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Can you please answer all Four? Thank you so much! Use the following data to answer questions 11 through 14: Davis Company purchased a new

Can you please answer all Four? Thank you so much! image text in transcribed
Use the following data to answer questions 11 through 14: Davis Company purchased a new piece of equipment on July 1, 2017 at a cost of $2,400,000. The equipment has an estimated useful life of 5 years and an estimated salvage value of $200,000. The current year end is 12/31/18. Davis records depreciation to the nearest month. 11. What is straight-line depreciation for 2018? a. $220,000. b. $240,000 c. $440,000. d. $480,000. 12. What is double-declining-balance depreciation for 2018? a. $576,000. b. $768,000 c. $880,000 d. $960,000 13. If Davis expensed the total cost of the equipment at 7/1/17, what was the effect on 2017 and 2018 income before taxes, assuming Davis uses straight-line depreciation? a. $1,960,000 understated and $440,000 overstated. b. $2,160,000 understated and $240,000 overstated. C. $2,180,000 understated and $440,000 overstated. d. $2,400,000 understated and $240,000 overstated. 14. If, at the end of 2019, Davis Company decides the equipment still has five more years of life beyond 12/31/19, with a salvage value of $200,000, what is straight-line depreciation for 2019? (Assume straight-line used in all years.) a. $240,000 b. $256,667 c. $290,000 d. $440,000

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