Use the following information to answer the question(s) below.

Kester Co. purchases a piece of equipment on May 1, 20xx, for $30,000. The equipment has an estimated life of eight years or 50,000 units of production and an estimated residual value of $3,000. Kester uses a calendar fiscal year.

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What is the amount of straight-line depreciation to be recorded in the first partial year? (Hint: use the nearest month and calculate a partial year.)

Question 20 options:

1)

$3,750

2)

$3,375

3)

$2,500

4)

$2,250

Question 21 (1 point)

Use the following information to answer the question(s) below.

Kester Co. purchases a piece of equipment on May 1, 20xx, for $30,000. The equipment has an estimated life of eight years or 50,000 units of production and an estimated residual value of $3,000. Kester uses a calendar fiscal year.

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The amount of depreciation to be recorded for the first partial year using the double-declining balance method, is

Question 21 options:

1)

$4,500

2)

$5,000

3)

$5,500

4)

$7,500

Question 22 (1 point)

Use the following information to answer the question(s) below.

Kester Co. purchases a piece of equipment on May 1, 20xx, for $30,000. The equipment has an estimated life of eight years or 50,000 units of production and an estimated residual value of $3,000. Kester uses a calendar fiscal year.

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The amount of depreciation to be recorded for the first partial year using the units of production method and assuming that 6,500 units are produced, is

Question 22 options:

1)

$3,900

2)

$2,340

3)

$3,510

4)

$2,600

Question 23 (1 point)

The primary difference between ordinary and extraordinary repairs is that extraordinary repairs

Question 23 options:

1)	Are an expense of the current period

2)	Are periodic in nature

3)	Are necessary to maintain the asset in good operational condition

4)	Extend the useful life or significantly improve the performance of the asset.