Question
On January 1, Year 1, Li Company purchased an asset that cost $110,000. The asset had an expected useful life of five years and an
On January 1, Year 1, Li Company purchased an asset that cost $110,000. The asset had an expected useful life of five years and an estimated salvage value of $22,000. Li uses the straight-line method for the recognition of depreciation expense. At the beginning of the fourth year, the company revised its estimated salvage value to $11,000. What is the amount of depreciation expense to be recognized during Year 4?
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$17,600
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$23,100
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$46,200
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$28,600
the other question
On January 1, Year 1, Friedman Company purchased a truck that cost $47,000. The truck had an expected useful life of 8 years and an $8,000 salvage value. Friedman uses the double-declining-balance method. What is the book value of the truck at the end of Year 1? (Do not round intermediate calculations.)
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$27,250
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$29,250
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$37,250
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$35,250
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