When a plant asset is acquired by the issuance of common shares, the cost of the plant asset is best measured by the

book value of the shares.

market value of the shares.

no par value of the shares.

stated value of the shares.

On July 1, 2006, Blenko Corporation purchased factory equipment for $300,000. Residual value was estimated to be $8,000. The equipment will be depreciated over ten years using the double declining-balance method. Counting the year of acquisition as one-half year, Blenko should record depreciation expense for 2007 on this equipment of

$48,000.

$60,000.

$52,560.

$54,000.

Weston Company purchased a tooling machine on January 3, 1999 for $600,000. The machine was being depreciated on the straight-line method over an estimated useful life of ten years, with no residual value. At the beginning of 2006, the company paid $150,000 to renovate (improve) the machine. As a result of this improvement, the company estimated that the useful life of the machine would be extended an additional five years (15 years total). What should be the depreciation expense recorded for the machine in 2006?

$41,250

$50,000

$66,000

$60,000