On 1/1/16, a company purchased a truck for $50,000. The truck was expected to be used for 5 years after which it would be worthless. On 1/2/19, the company had to replace the trucks motor and transmission at a cost of $12,000. This $12,000 cost to repair the truck would extend the useful life of the truck for 4 years beyond the original estimate of useful life. The $12,000 repair cost should be

		a. Expensed in 2019.
		b. Depreciated over 2019 and 2020, the final 2 years of the original estimate of useful life.
		c. Depreciated over 2019, 2020, 2021 and 2020, the 4-year increase in the trucks life.
		d. Depreciated over 2019, 2020, 2021, 2022, 2023 and 2024, the remaining life according to the new estimate.
		e. Depreciated over the 4 years of extended life, beginning in 2021.

Equipment was purchased on 1/1/14 for cash of $45,000. The useful life was estimated to be 10 years and the salvage value was estimated at $5,000. Using the double-declining balance method, how much depreciation expense would be recognized for the first full year of the assets estimated useful life?

		a. $ 9,000
		b. $ 8,000
		c. $ 4,500
		d. $ 4,000

Same data as previous question: Equipment was purchased on 1/1/14 for cash of $45,000. The useful life was estimated to be 10 years and the salvage value was estimated at $5,000. Using the double-declining balance method, how much depreciation expense would be recognized for the second full year of the assets estimated useful life?

		a. $ 6,200
		b. $ 6,400
		c. $ 7,200
		d. $ 7,400
		e. $ 1,800

Same data as previous question: Equipment was purchased on 1/1/14 for cash of $45,000. The useful life was estimated to be 10 years and the salvage value was estimated at $5,000. Using the double-declining balance method, how much depreciation expense would be recognized for the third full year of the asset's estimated useful life?

		a. $ 5,760
		b. $ 5,714
		c. $ 5,120
		d. $ 5,000
		e. $ 360