On October 1, 2008, Dole Company places a new asset into service. The cost of the asset is $60,000 with an estimated 5-year life and $15,000 salvage value at the end of its useful life. 99. What is the depreciation expense for 2008 if Dole Company uses the straight-line method of depreciation? a. $2,250 b. $12,000 c. $3,000 d. $6,000 Plant Assets, Natural Resources, and Intangible Assets 10 - 15 100. What is the book value of the plant asset on the December 31, 2008, balance sheet assuming that Dole Company uses the double-declining-balance method of depreciation? a. $39,000 b. $45,000 C. $54,000 d. $57,000 10 -16 Test Bank for Accounting Principles, Eighth Edition 107. Porter Company purchased equipment for $450,000 on January 1, 2007, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 3-year life and a $20,000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2009 will be a. $50,000. b. $30,000 c. $54,440. d. $34,440. 108. A plant asset was purchased on January 1 for $50,000 with an estimated salvage value of $10,000 at the end of its useful life. The current year's Depreciation Expense is $5,000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $25,000. The remaining useful life of the plant asset is a. 10 years. b. 8 years. c. 5 years. d. 3 years 109. Equipment was purchased for $60,000. Freight charges amounted to $2,800 and there was a cost of $8,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be a. $14,160 b. $11,760. c. $9,840. d. $9,600