On December 31, Strike Company sold one of its batting cages for $220,304. The equipment had an initial cost of $264,364.80 and had accumulated depreciation of $39,654.72. Depreciation has been recorded up to the end of the year. What is the amount of the gain or loss on this transaction?

a.Gain of $4,406.08

b.Loss of $-4,406.08

c.Loss of $-44,060.80

d.Gain of $39,654.72

If a fixed asset, such as a computer, were purchased on January 1st for $1,919 with an estimated life of 3 years and a salvage or residual value of $104, the journal entry for monthly expense under straight-line depreciation is

a.

Depreciation Expense 605.00

Accumulated Depreciation 605.00

b.

Accumulated Depreciation 50.42

Depreciation Expense 50.42

c.

Depreciation Expense 50.42

Accumulated Depreciation 50.42

d.

Accumulated Depreciation 605.00

Depreciation Expense 605.00

A machine costing $91,250 with a 5-year life and $5,500 residual value was purchased January 2. Compute depreciation for each of the five years, using the double-declining-balance method.

Year Depreciation

Year 1 $

Year 2 $

Year 3 $

Year 4 $

Year 5 $

Computer equipment was acquired at the beginning of the year at a cost of $70,000 that has an estimated residual value of $3,800 and an estimated useful life of 5 years.

a. Determine the depreciable cost.

$

b. Determine the straight-line rate.

%

c. Determine the annual straight-line depreciation.

$