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Salvage value of $20,000 and an estimated life of nased a tractor at a cost of SIRO.000 The tractor was purchased on January 1, 2016

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Salvage value of $20,000 and an estimated life of nased a tractor at a cost of SIRO.000 The tractor was purchased on January 1, 2016 and was The tractor has an estimated years or 12.000 hours o hours in 2017. purchased on January 1, 2016 and was used 2.400 hours in 2016 and 2.0 p years, or 12.000 hours of operation. depreciation expense in 2010 What method mint method of depreciation will produce the A) Straight-line B) Units-of-production C) Double-declining-balance D) All methods produce the same expense in 2016 Final Answer: 15. The net book value of a depreciable asset is A) The original cost of the asset B) The original cost of the asset less its accumulated depreciation C) The original cost of the asset less its salvage value D) The accumulated depreciation on the asset 16. Vance Machinery acquired a new machine on January 1, 2013 at a cost of $100,000, which was estimated to have a useful life of 10 years, and a salvage value of $40,000. Straight- line depreciation was used. On January 1, 2019, management decided that the estimate of useful life had been too long and that the machinery would have to be retired after two more years, that is, at the end of the eighth year of service), but would retain its original salvage value. Under this revised estimate, calculate the depreciation expense for the seventh year of use. A) $20,000 B) $12,000 Final Answer: C) $10,000 D) $12,500 17. How is the gain (loss) on a plant asset sale calculated? A) Asset sale price - Asset purchase cost B) Asset fair value - Asset sale price C) Asset sale price-Net book value of the asset D) Asset sale price - Total accumulated depreciation Final Answer: 18. On January 1, 2013, Adventure Corporation purchased for $316,000, equipment having a useful life of ten years and an estimated salvage value of $16,000. Adventure has recorded depreciation of the equipment on the straight-line method. On December 31, 2020, the equipment was sold for $56,000. As a result of this sale, Adventure should recognize: A) S-0- B) A gain of $27,200 C) A loss of $20,000 D) A loss of $56,000 Final

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