Max Company purchased a machine on January 1, paying cash of $270,000. The machine has an estimated useful life of five years (or the production of 60,000 units) and an estimated residual value of $30,000. #1 What is depreciation expense for year four using the straight-line method?

Select one:

a. $48,000

b. $54,000

c. $192,000

d. $60,000

e. $78,000

#2

What is accumulated depreciation on the machinery after two years using straight-line depreciation?

Select one:

a. $108,000

b. $96,000

c. $48,000

d. $54,000

e. $120,000

#3

What is the book value of the machine after three years using straight line depreciation?

Select one:

a. $174,000

b. $126,000

c. $222,000

d. $240,000

e. $78,000

#4

What is depreciation expense for year five using the declining-balance method and a 200% acceleration rate?

Select one:

a. $4,992

b. $30,000

c. $23,328

d. $240,000

e. $13,997

#5

What is accumulated depreciation on the machinery after three years using the declining-balance method and a 200% acceleration rate?

Select one:

a. $211,680

b. $240,000

c. $172,800

d. $108,000

e. $235,008

#6

If the machine was used to produce and sell 17,000 units in year two, what would depreciation expense be under the units of production method?

Select one:

a. $68,000

b. $202,000

c. $93,500

d. $76,500

e. $232,000

#7

What is the book value of the machine after three years using the sum of the years digits method?

Select one:

a. $68,000

b. $54,000

c. $78,000

d. $48,000

e. $96,000