A company used straight-line depreciation for an item of equipment that cost $18,800, had a salvage value of $5,000 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,880 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life:

$3,340.

$4,500.

$5,000.

$1,380.

$7,307.

Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $160,000. The asset is expected to have a salvage value of $16,500 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset's book value on December 31, Year 2 will be:

$144,000

$31,320

$34,560

$46,980

$86,400

Peavey Enterprises purchased a depreciable asset for $22,500 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,100, what will be the amount of accumulated depreciation on this asset on December 31, Year 3?

$4,250

$5,100

$17,000

$4,250

$14,025

Peavey Enterprises purchased a depreciable asset for $22,500 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,100, what will be the amount of accumulated depreciation on this asset on December 31, Year 3?

$4,250

$5,100

$17,000

$4,250

$14,025

The following information is available on a depreciable asset owned by Mutual Savings Bank:

Purchase date	June 1, Year 1
Purchase price	$82,600
Salvage value	$11,400
Useful life	8 years
Depreciation method	straight-line

The asset's book value is $64,800 on June 1, Year 3. On that date, management determines that the asset's salvage value should be $6,400 rather than the original estimate of $11,400. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:

$2,366.37

$4,866.67

$1,958.33

$2,433.33

$2,700.00

A total asset turnover ratio of 4.0 indicates that:

For every $1 in sales, the firm acquired $4.0 in assets during the period.

For every $1 in assets, the firm produced $4.0 in net sales during the period.

For every $1 in assets, the firm earned gross profit of $4.0 during the period.

For every $1 in assets, the firm earned $4.0 in net income.

For every $1 in assets, the firm paid $4.0 in expenses during the period.

A company had average total assets of $897,000. Its gross sales were $1,090,000 and its net sales were $1,000,000. The company's total asset turnover equals:

1.26.

1.09.

1.11.

0.82.

0.90.