Question
Please help me with questions 36 through 39 A company that uses a calendar year purchases an asset with a historical cost of $250,000, a
Please help me with questions 36 through 39
A company that uses a calendar year purchases an asset with a historical cost of $250,000, a residual value of $5,000 and an estimated life of 5 years.
36. Under straight-line method, the depreciation rate is...
a. 40%
b. 20%
c. 10%
d. 4%
37. If the asset is acquired on September 30, the first-year depreciation under the straight line method is
a. $50,000
b. $49,000
c. $25,000
d. $12,250
38. If the asset is acquired on January 1, first-year depreciation under the double-declining balance method is
a. 40%
b. 20%
c. 25%
d. 5%
39. If the asset is acquired on January 1, and is depreciated under the double-declining balance method, second year depreciation is
a. $100,000
b. $60,000
c. $50,000
d. $25,000
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