Lowery Food Market owns refrigeration equipment that cost $10,000 and has accumulated depreciation of $7,400. The company exchanges the equipment for new equipment worth $12,000. In addition to the old equipment, the company pays $10,000 for the new equipment. Which of the following is the correct entry to record the transaction?

Question 14 options:

	Refrigeration equipment 12,000 Accumulated depreciation 7,400 Loss on exchange of equipment 600 Cash 10,000 Refrigeration equipment 10,000
	Refrigeration equipment 10,000 Accumulated depreciation 10,000 Gain on exchange of equipment 600 Cash 12,000 Refrigeration equipment 7,400
	Refrigeration equipment 12,000 Accumulated depreciation 7,400 Cash 10,000 Refrigeration equipment 9,400
	None of the above

A company purchased a computer for $10,000 on July 1, 2009. The computer has an estimated useful life of 5 years and will have no salvage value. It is estimated that the computer can be used for 5,000 hours. The computer was used for 450 hours during 2009. Assuming the company is a calendar year company, compute the company's depreciation expense for 2009 under each of the following methods of depreciation, straight-line, units-of-production (or units-of-activity), and double declining-balance.

Question 24 options:

	Straight-line, $2,000; Units-of-production, $1,800; Double declining-balance, $4,000
	Straight-line, $2,000; Units-of-production, $2,000; Double declining-balance, $4,000
	Straight-line, $1,000; Units-of-production, $900; Double declining-balance, $2,000
	Straight-line, $1,800; Units-of-production, $1,000; Double declining-balance, $3,600
	none of the above.

A company purchased equipment for $100,000 in 2008. The machine will be used for 10,000 hours and will have a residual value of $20,000. The equipment was used for 2,400 hours in 2008. How much depreciation will be deducted if the company elects the units-of-production method for tax return purposes?

Question 25 options:

	$24,000
	$20,000
	$19,200
	$10,000
	none of the above.