Use the following information for Questions 7-8. 7.Shaggy Limited purchased a new van on January 1, 2011. The van cost $20,000. It has an estimated life of five years and the estimated residual value is $5,000. Shaggy uses the double- declining balance method to compute depreciation. What is the depreciation expense for 2011? A. $4,000. B. $3,000. C. $6,000. D. $8,000. 8. What is the balance in the Accumulated Depreciation account at the end of 2012 after the depreciation adjustment? A. $3,200 B. $4,800 C. $9.600. D. $12,800. 9. An asset is purchased on January 1 for $40.000. It is expected to have a useful life of five years after which it will have an expected salvage value of $5,000. The company uses the straight-line method. If it is sold for $30,000 exactly two years after its purchased, the company will record a: A. gain of $6,000. B. gain of $4,000. C. loss of $4,000. D. loss of $6,000. 10. A trucking company sold its fleet of trucks for $55.000. The trucks had originally cost $1,410,000 and had accumulated depreciation of $1.269,000 through the date of disposal. What gain or loss did the trucking company record when it sold the fleet of trucks? A. Gain of $86,000. B. Gain of $55,000. C. Loss of $55,000. D. Loss of $86,000. 11. When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $25.000 and its estimated residual value is $3,000. After 3 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 5 years and there was no change in the estimated residual value. The depreciation expense in year 4 is A. $6,875 B. $4,400 C. $4,125 D. $1,650