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Use the following the answer questions 41-42: On October 1, 2016, Dole Company places a new asset into service. The cost of the asset is
Use the following the answer questions 41-42: On October 1, 2016, Dole Company places a new asset into service. The cost of the asset is $60,000 with an estimated 5-vears life and $15.000 salvage value at the end of its useful le 41. What is the depreciation expense for 2016 if Dole Company uses the straight-line med of depreciation? A) $2,250 B) $12,000 C) $3,000 D) $6,000 42. What is the book value of the plant asset on the December 31", 2016, balance sheet assuming that Dole Company uses the double-declining-balance method of depreciation? A) $39,000 B) $45,000 C) $54,000 D) $57,000 Use the following to answer questions 43-44: Grey Company purchased a new van for floral deliveries on January 1", 2016. The van cost $36,000 with an estimated life of 5 years and $9,000 salvage value at the end of its useful life. The double-declining-balance method of depreciation will be used. 43. What is the depreciation expense for 2016? A) $7,200 B) $5,400 C) $10,800 D) $14,400 44. What is the balance of the Accumulated Depreciation account at the end of 2017? A) $5,760 B) $17,280 C) $23,040 D) $8,640
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