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D from q.2 MULTIPLE CHOICE (2 points; 0.5 points each) 1. For income statement purposes, depreciation is definitely (CLEARLY) a true variable expense if the
D from q.2 MULTIPLE CHOICE (2 points; 0.5 points each) 1. For income statement purposes, depreciation is definitely (CLEARLY) a true variable expense if the depreciation method used is a. units-of-production b. straight-line. c. sum-of-the-years-digits. d. declining-balance. Slotkin Products purchased a machine for $65,000 on July 1, 2017. The company intends to depreciate it over 8 years using the double-declining balance method. Salvage value is $5,000. Depreciation for 2018 to the closest dollar is 2. a $32,500 b. $8,125 C. $14,219 d. $12,500 3 On January 1, 2017, Garden Company purchased a new machine for $4,200,000. The new machine has an estimated useful life of nine years and the salvage value was estimated to be $150,000. Depreciation was computed using the sum-of-the-years-digits method. What amount should be shown in Garden's balance sheet at December 31, 2018, net of accumulated depreciation, for this machine? a. $3,390,000 b. $2,670,000 C. $2,613,331 d. $2,488,500 A plant asset with a five-year estimated useful life and no residual value is sold at the end of the second year of its useful life. In general, how would using the straight- line method of depreciation instead of the SYD method of depreciation affect a gain or loss on the sale of the plant asset at the end of Year 2? Gain Loss a. Higher Higher b. Lower Higher Higher Lower d. Lower Lower d. Units of production method. 2020: 2021
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