Jemima Ltd. purchased factory equipment for $200,000, and estimated that the equipment will have a $20,000 residual value at the end of its estimated 5-year useful life. If Jemima uses the double diminishing-balance method of depreciation, the depreciation expense for the second year after purchase would be

Question options:

1)

$43,200.

2)

$48,000.

3)

$72,000.

4)

$80,000.

Question 30

1 / 1 point

A machine that cost $72,000 has an estimated residual value of $6,000 and an estimated useful life of 5 years or 30,000 hours. Using the units-of-production method, the depreciation expense for the second year, during which the machine was used 5,000 hours, would be

Question options:

1)

$14,400.

2)

$13,200.

3)

$12,000.

4)

$11,000.

Question 31

1 / 1 point

On April 1, 2018, Check Mate Ltd. places a new asset into service. The cost of the asset is $40,000 with an estimated 8-year life and $2,500 residual value. Assuming that Check Mate uses the double diminishing-balance method of depreciation, what is the carrying amount of the asset at December 31, 2018?

Question options:

1)

$32,500

2)

$30,625

3)

$38,125

4)

$35,000