Purchase date	July 1, Year 1
Purchase price	$109,100
Salvage value	$10,700
Useful life	12 years
Depreciation method	straight-line

1. The asset's book value is $92,700 on July 1, Year 3. On that date, management determines that the asset's salvage value should be $5,700 rather than the original estimate of $10,700. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:

a.1907.50

b. 4350.00

c. 2108.04

d. 2317.50

e 2175.00\

2. Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $112,500, allowance for doubtful accounts of $745 (credit) and sales of $965,000. If uncollectible accounts are estimated to be 8% of accounts receivable, what is the amount of the bad debts expense adjusting entry?

a. 9745

b. 8255

c. 9000

d. 8440

e. 8590

3.A company purchased a delivery van for $31,900 with a salvage value of $3,700 on September 1, Year 1. It has an estimated useful life of 6 years. Using the straight-line method, how much depreciation expense should the company recognize on December 31, Year 1?

a. 4700

b. 1567

c. 5317

d. 1175

e. 1772