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Part A Part B 5) Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The asset is expected
Part A Part B 5) Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The asset is expected to have a salvage value of $20,000 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset's book value on December 31, Year 2 will be: A) $36,000 B) $42,000 C) $54,000 D) $16,000 E) $90,000 6) Peavey Enterprises purchased a depreciable asset for $22,000 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,000, what will be the amount of accumulated depreciation on this asset on December 31, Year 3? A) $5,000 B) S15,000 C) $15,125 D) $20,000 E) $13,750 7) A benefit of using an accelerated depreciation method is that: A) It is preferred by the tax code. B) It is the simplest method to calculate. C) It yields larger depreciation expense in the early years of an asset's life. D) It yields a higher income in the early years of the asset's useful life. E) The results are identical to straight-line depreciation
Part A
Part B
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