T. Smart purchased machinery costing $500,000; the useful life is estimated to be 10 years with a salvage value of $50,000. If the sum-of-the-years' Digits method of depreciation is used. The depreciation expense for the sixth year is: 1 points O A) $40,909.10 B) $54,545.45 O C) $45,454.55 OD) $49,090.91 15. Amaru Ltd bought equipment for $60,000. The straight line method is used to calculate depreciation. What would be the book value of the equipment at the end of 2 years, if the equipment was expected to last for 4 years and have a scrap value of $4,000? points OA) $28,000 O B ) $32,000 O C) $30,000 O D) $8,000 16. If a $800 rent prepaid was inadvertently treated as an accrual, net profit would be 1 points O O O A) Overstated by $1 600 B) Overstated by $800 C) Understated by $800 D) Understated by $1 600 Prepaid insurance at the start of the year was $4,560, insurance paid during the year amounted to $13,200 and accrued insurance at the end of the year $1670. How much should be closed to the income statement and balance sheet. 1 points O O O A) 1/S - $19,430 & B/S - $1.670 B) 1/S- $17,760 & B/S $1,670 C) 1/S-$13,2000 & B/S $1,670 D) /S - $16,090 & B/S - $1,670