On January 1,2014, Pine purchased an asset that had an estimated salvage value of $700 after the estimated useful life of 4 years. Pine uses the sum-of-years-digit depreciation method and recorded $1,560 of depreciation expense in 2016. What was the original cost of the asset?

The following expenditures relating to a factory building were made by East Company during the year ended 12/31/16:

Replacement of all the old doors with new fireproof doors $75,000

Cleaned the factory building and lubricated the Machinery $25,000

Major improvements to the plumbing system $35,000

How much should be capitalized in 2016?

In 2016, Sage Company discovered that a building addition completed December 30,2011, at a cost of $850,000 was charged to building and maintenance expense in error. The cost should have been charged to the building account and assigned a useful life of 30 years and no salvage value. At December 31,2016, the building addition had 20 years of life remaining and a $100,000 salvage value. Assume no change in the original salvage value and life. The entry that should be made as of December 31,2016, to correct the error and record 2016 depreciation assuming straight line depreciation method is used by the company is (ignoring income taxes)

A)Buildings $850,000

Building maintenance expense $850,000

B)Buildings $850,000

Retained Earnings $850,000

C)Buildings $850,000

Accumulated depreciation $31,900

Cumulative effect change in accounting $818,100

D)Buildings $850,000

Accumulated depreciation $143,900

Retained Earnings $706,100

E)None of the above,the journal entry is?

Jennings Advertising Inc. reported the following on its December 31,2015,balance sheet:

Equipement $500,000

Accumulated depreciation $135,000

In a footnote, Jennings indicates that it uses straight-line depreciation over 10 years and estimates salvage value as 10% of cost. What is the average age of the equipment owned by Jennings?