On January 1, 2015, a company bought a machine for $120,000. The machine has a useful life of 5 years and a salvage value of $20,000. The company used the double declining balance method of depreciation. What is depreciation for 2016? Select one:

a. $28,800

b. $48,000

c. $24,000

d. $40,000

Which answer is FALSE? In accounting for plant assets, accountants must:

Select one:

a. Record the acquisition cost of the asset.

b. Record unit capacity of the asset (e.g., how many pages a copy machine is going to print over its life).

c. Record subsequent expenditures on the asset (e.g., capital improvements).

d. Account for the disposal of the asset (e.g., gains when the asset is sold)

The units-of-production depreciation formula is:

Select one:

a. (x)Deprecation per period = Asset cost + Estimated salvage value.

b. (y)Estimated total units of production during useful life of asset-Salvage Value

c. (z)Depreciation per period = Depreciation per unit Number of units of goods produced.

d. (x), (y), and (z).

e. (x) and (z) only.