Section 5-THE DECLINING BALANCE (DB) METHOD OF DEPRECIATION 1. Assume all companies are on a calendar year unless otherwise stated. Your company uses the DDB method. Assets purchased between the 1 and 15th are depreciated for the entire month; assets purchased after the 15th as though they were acquired the following month. On May 1, 20X1, it purchases for $250,000 a machine with a useful life of 12 years and a salvage value of $10,000. What is the machine's book value at the end of 20X2? a. $173,611 b. $185,185 c. $208,323 d. 2. $215,278 Your company uses the DDB method. Assets purchased between the 1 and 15th are depreciated for the entire month; assets purchased after the 15th as though they were acquired the following month. On July 1, 20X1, it purchases for $200,000 machine with a useful life of 10 years and a salvage value of $20,000. What is 20X2 depreciation expense? a. $38,800 b. $32,400 c. $32,000 d. 3. $36,000 On January 1, 20X1, your company purchases for $500,000 a machine with a useful life of 12 years and a salvage value of $25,000. If your company uses DDB depreciation, what is 20X4 expense? a. $48,225 b. $45,814 C. $47,839 d. 4. $45,428 Your company uses the DDB method. Assets purchased between the 1 and 15th are depreciated for the entire month; assets purchased after the 15th as though they were acquired the following month. On April 6, 20X1, your firm purchases for $250,000 a machine that management estimates will last 15 years and have a salvage value of $10,000. What is 20X1 depreciation expense? a. $21,333 b. $25,000 c. $33,333 d. $32,000