Suppose an automobile cost $30,000 and has accumulated depreciation of $8,000. It is sold for $25,000 cash.

What is the journal entry to record the sale of the automobile?

Cash 25000 Accumulated Dep 8,000 Automobile 30000 Gain on Disp 3000 The excess of the cost of an acquired company over the sum of the market value of its net assets is __________. Goodwill

A piece of equipment costs $100,000 and has $5,000 of depreciation expense each year using the straight-line method. What is the book value at the end of the third year?

$85,000 5000*3=15000. 100,000-15,000=85,000

Which depreciation method always gives you the same amount of depreciation expense each year?

straight line method Base Electronics has a piece of machinery that costs $400,000 and is expected to have a useful life of 5 years. Residual value is expected to be $50,000.

Using the straight-line method, what is depreciation expense for the first year? $70,000 What would be the journal entry to record $20,000 in depletion expense for the year?

Depletion Expense-of resources 20,000 Acc. Depletion-of Resources 20,000