A company purchased equipment valued at $100, 000 on January 1. The equipment has an estimated useful life of five years. The equipment is estimated to have a salvage value of $10, 000. Assuming the double declining balance method of depreciation, what is the annual depreciation for the second year? A. $36, 000 B. $24, 000 C. $60, 000 A company purchased equipment valued at $300, 000 on January 1. The equipment has an estimated useful life of six years or 500, 000 units. The equipment is estimated to have a salvage value of $20, 000. Assuming the units of production method of depreciation, what is the depreciation expense for the second year if the equipment produced 80, 000 units in the year? A. $16, 677 B. $48, 000 C. $44, 800 The useful life of a plant asset is: A. The length of time it is used productively in a company's operations. B. Never related to its physical life. C. Its productive life, but not to exceed one year. D. Determined by the FASB. E. Determined by law. On December 31, 2013, Stable Company sold a piece of equipment that was purchased on January 1, 2008. The equipment originally cost $820, 000 and has an estimated useful life of eight years. Stable uses the straight-line method of depreciation. What is the gain/loss on the sale of equipment that Stable will recognize if the equipment was sold for $230, 000? A. $230, 000 gain B. $25, 000 loss C. $25, 000 gain D. $73, 750 gain E. $0; no gain or loss A machine originally had an estimated useful life of 5 years, but after 3 complete years it was decided that the original estimate of useful life should have been 10 years. At that point the remaining cost to be depreciated should be allocated over the remaining: A. 2 years B. 5 years C. 7 years D. 8 years E. 10 years