> On January 1, 2019, Woodstock, Inc. purchased a machine costing $40.000. Woodstock ) also paid $1,000 for transportation and installation. The expected useful life of the machine is 6 years and the residual value is $5,000. 40,000 - 5,000 : 6 years How much is the annual depreciation expense, assuming use of the straight-line depreciation method? A) $5,950. B) $5,750. C) $6,100. D) $6,000 Warren Company plans to depreciate a new building using the double declining-balance 6) depreciation method. The building cost is $800,000. The estimated residual value of the building is $50,000 and it has an expected useful life of 25 years. 800,000 50,000 25 yrs. Assuming the first year's depreciation expense was recorded properly, what would be the amount of depreciation expense for the second year? 809200 X 125 = A) $30,720. B) $58,880. C) $32,000.00 D) 564,000. 800,000 -84) 2125 = 7) On January 1, 2019, Wasson Company purchased a delivery vehicle costing $40,000. The vehicle has an estimated 6-year life and a $4,000 residual value. Wasson uses the units-of-production depreciation method and Wasson estimates that vehicle will be driven 100,000 miles. What is the vehicle's book value as of December 31, 2020, assuming the vehicle was driven 10,000 miles during 2019 and driven 18,000 miles during 2020? A) $28,800. B) $25,920. C) $29,920. D) $24,800. 8) 8) A company has some bottling equipment which cost $8.5 million, has a net book value of $4.1 million, estimated future cash flows of $3.7 million, and a fair value of $3.1 million. How much is the asset impairment loss? A) $0.4 million. B) $1.0 million. C) $4.1 million. D) $5.4 million 9) 9) On December 31, 2019, Hamilton Inc, sold a used industrial crane for $600,000 cash. The original cost of the crane was $5.0 million and its accumulated depreciation equaled $4.2 million on December 31, 2019. What is the gain or loss from the December 31, 2019 equipment sale? A) $600,000 gain. B) $200,000 loss. C) $200,000 gain. D) $600,000 loss