Depreciation:

An asset was purchased for $144,000 on January 1 , Year 1 and originally estimated to have a useful life of 10 years with a residual value of $14,000. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $1,800. Calculate the third-year depreciation expense using the revised amounts and straight-line method. a. $30,050.00 b. $29,050.00 c. $29,550.00 d. $28,050.00 Computer equipment was acquired at the beginning of the year at a cost of $68,506 that has an estimated residual value of $3,848 and an estimated useful life of 7 years. Determine the second-year depreciation using the straight-line method. a. $18,473.71 b. $9,236,86 c. $10,336.29 d. $9,786.57 On June 1, Scotter Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years or 30,000 hours. Using straight-line depreciation, calculate depreciation expense for the first year, which ends on December 31. a. $17,500 b. $30,000 c. $40,000 d. $12,500 If a fixed asset, such as a computer, were purchased on January 1 st for $1,704 with an estimated life of 5 years and a salvage or residual value of $137, the journal entry for monthly expense under straight-line depreciation is b. Accumulated Depreciation 313.40 Depreciation Expense 313.40 d. Accumulated Depreciation 26.12 Depreciation Expense 26.12 Equipment with a cost of $142,667 has an estimated residual value of $9,417 and an estimated life of 7 years or 15,544 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,231 hours? a. $27,697.55 b. $19,035.71 c. $7.00 d. $41.24