• On January 1, Year 1, Florist Gump, Inc., bought machinery at a cost of $3,000 with a salvage value of $400 and useful life of 5 years. Calculate Depreciation Expense on the income statement for December 31, Year 2, assuming the straight-line method is used.

• Garden of Eat'n Corp. has the following items that the controller is uncertain of where to place on the Statement of Cash Flows:

Net Income$75,000

Sales of Equipment150,000

Depreciation Expense45,000

Purchases of Property175,000

A total of $______ should appear in the Investing Activities section.

• On-A-Roll, Inc.,bought machinery at a cost of $25,000 with a salvage value of $7,000 and useful life of 10 years. Calculate Depreciation Expense on the income statement for the year ended Year 2 using the straight-line method.

• Florist Gump, Inc., purchased a truck on January 1, Year 1, at a cost of $86,000. The truck has an estimated useful life of 5 years or 112,000 miles. The estimated salvage value is $24,000. In Year 1, the truck was driven 16,000 miles. In Year 2, the truck was driven 28,000 miles. Accumulated Depreciation using straight-line depreciation at December 31, Year 2, after two years of use, equals (rounded to the nearest dollar) ______.