Nathan 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 Nathan Ltd uses the double diminishing-balance method of depreciation, the depreciation expense for the second year after purchase would be $72.000. $80,000. $43,200. $48,000. On January 1, 2017, Flowers Unlimited purchased a new delivery van. The van cost $35,000 with an estimated life of 5 years and $5,000 residual value. Double diminishing-balance depreciation will be used. What is the balance in the Accumulated Depreciation account at the end of 2018? $10,800 $19,200 $22,400 $12,600 On July 1, 2018, Happy Hound Kennels Inc. sells equipment for $20,000. The equipment originally cost $80,000, had an estimated 5-year life and an expected residual value of $10,000. The Accumulated Depreciation account had a balance of $49,000 on January 1, 2018, using the straight-line method. The gain or loss on disposal is $4,000 loss. $11,000 loss. $11,000 gain. $4,000 gain. Forest Construction Ltd. issued 5,000 common shares in exchange for a parcel of land on January 27. The shares were trading at $3.50 per share and the fair value of land was $20,000 on the date of the acquisition. The assessed value of the land for the property tax purpose is $15,000. The journal entry to record the transaction would include a credit Common Shares $ 17,500. credit Common Shares $20,000 debit Loss on Land Acquisition $5,000 debit Land $15,000