When originally purchased, a vehicle costing $25,740 had an estimated useful life of 8 and an estimated salvage value of $3,100. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:

$2,830.00.

$5,660.00.

$5,828.00.

$11,320.00.

$2,998.00.

An asset's book value is $19,400 on December 31, Year 5. The asset has been depreciated at an annual rate of $4,400 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $16,400, the company should record:

A gain on sale of $3,600.

Neither a gain nor a loss is recognized on this type of transaction.

A loss on sale of $3,600.

A gain on sale of $3,000.

A loss on sale of $3,000.

A total asset turnover ratio of 3.8 indicates that:

For every $1 in sales, the firm acquired $3.8 in assets during the period.

For every $1 in assets, the firm produced $3.8 in net sales during the period.

For every $1 in assets, the firm earned gross profit of $3.8 during the period.

For every $1 in assets, the firm earned $3.8 in net income.

For every $1 in assets, the firm paid $3.8 in expenses during the period.

Phoenix Agency leases office space for $7,800 per month. On January 3, Phoenix incurs $66,500 to improve the leased office space. These improvements are expected to yield benefits for 7 years. Phoenix has 5 years remaining on its lease. Compute the amount of expense that should be recorded the first year related to the improvements.

$21,100.

$13,300.

$7,800.

$17,300.

$9,500.

Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $152,000. The asset is expected to have a salvage value of $16,300 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset's book value on December 31, Year 2 will be:

$29,592

$82,080

$44,388

$32,832

$136,800

Peavey Enterprises purchased a depreciable asset for $31,500 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $3,900, what will be the amount of accumulated depreciation on this asset on December 31, Year 3?

rev: 07_11_2016_QC_CS-55391

$23,000

$27,600

$6,900

$5,750

$18,975