On April 30, 2014, Tilton Products purchased machinery for $220,000. The useful life of this machinery is estimated at 8 years, with an $20,000 residual value.

46. Assume that in its financial statements, Tilton Products uses straight-line depreciation and the half-year convention. Depreciation expense recognized on this machinery in 2014 and 2015 will be: A. $18,750 in 2014 and $27,500 in 2015. B. $15,000 in 2014 and $30,000 in 2015. C. $12,500 in 2014 and $25,000 in 2015. D. $27,500 in 2014 and $13,750 in 2015.

47. Assume that in its financial statements, Tilton Products uses straight-line depreciation and rounds depreciation for fractional years to the nearest month. Depreciation expense recognized on this machinery in 2014 and 2015 will be:

A. $13,333 in 2014 and $25,000 in 2015. B. $10,000 in 2014 and $25,000 in 2015. C. $16,667 in 2014 and $25,000 in 2015. D. $25,000 in 2014 and $25,000 in 2015.

48. Assume that in its financial statements, Tilton Products uses the 200%-declining-balance method and the half-year convention. Depreciation expense in 2014 and 2015 will be:

A. $27,500 in 2014 and $48,125 in 2015. B. $55,000 in 2014 and $48,125 in 2015. C. $55,000 in 2014 and $41,250 in 2015. D. $27,500 in 2014 and $55,000 in 2015.

49. Assume that in its financial statements, Tilton Products uses the 150%-declining-balance method and the half-year convention. Depreciation expense in 2014 and 2015 will be:

A. $20,625 in 2014 and $37,383 in 2015. B. $41,250 in 2014 and $37,383 in 2015. C. $41,250 in 2014 and $41,250 in 2015. D. $37,500 in 2014 and $34,219 in 2015.

50. In the year 2020, Tilton Products sells this machinery for $12,000. At the date of sale, the machinery had been depreciated by Tilton Products to its estimated residual value of $20,000. This sale results in:

A. A $8,000 loss in both the company's financial statements and income tax return. B. No gain or loss in either the financial statements or income tax return. C. A $8,000 loss in the financial statements; a $8,000 gain in the income tax return. D. A $8,000 loss in the financial statements, but no gain or loss in the income tax return.