basket purchase including land, a building and equipment 20,000 for the land, $340,000 for the building and $40,000 t On January 1, Year 1, Phillips Company made a 0.00 for the iathe equipmeense the equipment which is estimated to have depreciation for $380,000. The appraised values of the assets arc an dspany made the for equipment. Phillips uses the double-declining-balance m t a useful life of four years and a salvage value of $5,000. What is Year 1? ues of the assets are method for enpreciation A) $20,000 B) $19,000 C) $9,500 D) $17,000 17) Which method of depreciation is used by most U.S. companies for A) Units-of-production B) MACRS C) Straight-line D Double-declining-balance 18) On January 1, Year 1, Friedman useful life of 100,000 miles over 8 years and an $8,000 salvage value. During Year 2 ci y 18,500 miles. Friedman uses the units-of-production method. What is depreciation expense in Company purchased a truck that cost $48.000. The truck had an expected Friedman drove the truck 18) on expense in Year 2? A) $5,000 B) S6,000 C) $7,400 D) $8,880 19) Tyler Company purchased equipment that cost $260,000 cash on January 1, Year 1. The equipment had an expected useful life of five years and an estimated salvage value of $10,000. Tyler depreciates its assets under the straight-line method. What is the amount of depreciation expense appearing on the Year 1 income statement? 19) A) $100,000 B) S50,000 C)$26,000 D) $52,000 20) On January 1, Year 1, XYZ Company paid $60,000 cash to purchase a truck. The truck has a $5,000 salvage value and a 4-year useful life. XYZ uses the double-declining-balance method. How much depreciation expense would XYZ report on its Year 2 income statement? 20) 1) $30,000 B) $15,000 C) $20,000 D) $13,750