Company A starts Year 1 with no Property Plant or Equipment. It purchases a machine worth $20,000 which it can depreciate over ten (10) years.

At the end of the ten year period, the machine will have no salvage value.

Assume there are no other additions to Property Plant and Equipment during the ten year period.

Using the Straight Line Depreciation method, the amount charged for depreciation in Year 1 will be:

1. $2,000

2. $4,000

3. $14,000

4. $20,000

Using the Double Declining Balance method, the amount charged for depreciation for Company A in Year 1 will be:

1. $2,000

2. $4,000

3. $8,000

4. $20,000

Using the Straight Line Depreciation method, the accumulated depreciation for Company A in Year 4 will be:

1. $2,000

2. $4,000

3. $8,000

4. $10,000

Which of the following is true about Property, Plant and Equipment

1. It is essentially the companys Fixed Assets

2. It includes all unimpaired Goodwill

3. It is also the companys Intangible Assets

4. The land portion of PP&E is depreciated over the period of time it benefits the firm.