Question
Multiple Choice Question 911 A company purchased factory equipment for $540000. It is estimated that the equipment will have a $60000 salvage value at the
Multiple Choice Question 911 A company purchased factory equipment for $540000. It is estimated that the equipment will have a $60000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be O $192000. O $129600. O $82560. O $216000. Multiple Choice Question 94 A factory machine was purchased for $389000 on January 1, 2021. It was estimated that it would have a $72000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 37000 hours in the 5 years. The company ran the machine for 3700 actual hours in 2021. If the company uses the units-of-activity method of depreciation, the amount of depreciation expense for 2021 would be O $72000. O $63400. $31700. $38900. Multiple Choice Question 99 On October 1, 2021, Marigold Company places a new asset into service. The cost of the asset is $112000 with an estimated 5-year life and $28000 salvage value at the end of its useful life. What is the depreciation expense for 2021 if Marigold Company uses the straight-line method of depreciation? O $5600 $4200 $22400 $11200 Multiple Choice Question 109 Equipment was purchased for $149000. Freight charges amounted to $7000 and there was a cost of $20100 for building a foundation and installing the equipment. It is estimated that the equipment will have a $30800 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be $29060. $35220. $23640. $24380
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started