Question 1 Asset cost $35,000 Prepaid Insurance $5,000 Maintenance costs $3,000 Accumulated Depreciation $10,000 Book Value $________ Based on the information above, the book value of the tractor is __________. a.)$33,000 b.)$43,000 c.)$25,000 d.)$28,000

2 Consider the following information for a machine:

Cost = $14,000 Residual Value = $2,000 Useful Live = 5 years Using straight line depreciation, what would the depreciation be after 18 months? a.)$660 b.)$1,800 c.)$200 d.)$3,600 4. Peter's company has decided to sell their forklift. The market value of the forklift is $35,000. He predicts that the book value is $30,000. Given this information, which of the following is true? a.)Peter would record a loss for the sale of the forklift in the amount of $30,000. b.)Peter would record a loss for the sale of the forklift in the amount of $5,000. c.)Peter would record a gain for the sale of the forklift in the amount of $5,000. d.)Peter would record a gain for the sale of the forklift in the amount of $30,000.

5. The machine that was used to produce notebooks cost $750,000 when it was purchased new one year ago. It has an expected life span of 10 years. The income statement showed the straight line deprecation rate as 10%.

Using double declining balance depreciation, the book value of the machine at the end of year two is __________.

a.)$330,000

b.)$480,000

c.)$600,000

d.)$150,000