Page 7 On October 1, 2016 Duncan Company places a new asset into service The cost of the asset is $12,000 with an estimated 5-year life and $3,000 salvage value at the end of its useful life. 29. What is the depreciation expense for 2016 if Duncan Company uses the straight-line method of depreciation? a) $450. b) $2,400 c) $600 d) $1,200 30. What is the book value of the plant asset on the December 31, 2016 balance sheet assuming that Duncan Company uses the double - declining-balance method of depreciation? a) $7,800. b) $9,000 c) $10,800 d) $11,400 31. A change in the estimated useful life of equipment requires a) A retroactive change in the amount of periodic depreciation recognized in previous years. I b) That no change be made in the period depreciation so that depreciation amounts are comparable over the life of the asset. c) That the amount of periodic depreciation be changed in the current year and in future years. d) Thant income for the current year be increased. 32. Jeff's Copy Shop bought equipment of $24,000 on January 1, 2016. Jeff estimated the useful life to be 3 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2017, Jeff decides that the business will use the equipment for 5 years. What is the revised depreciation expense for 2017? a) $8,000 b) $3,200. c) $4,000. d) $6,000