Which depreciation method is most frequently used in businesses today?

Straight-line

Declining-balance

Units-of-activity

Double-declining-balance

Sargent Corporation bought equipment on January 1, 2017. The equipment cost $130,000 and had an expected salvage value of $10,000. The life of the equipment was estimated to be 6 years. The total depreciable cost of the equipment is

$120,000.

$130,000.

$140,000.

$10,000.

Sargent Corporation bought equipment on January 1, 2017. The equipment cost $130,000 and had an expected salvage value of $10,000. The life of the equipment was estimated to be 6 years. The depreciation expense for the first year (2017) using the straight-line method of depreciation is

$10,000.

$20,000.

$21,667.

$23,333.

Equipment that cost $200,000 and on which $100,000 of accumulated depreciation has been recorded was disposed of for $90,000 cash. The entry to record this event would include

a. a loss of $10,000.

b a gain of $10,000.

c a credit to the Equipment account for $90,000.

d a credit to Accumulated Depreciation for $90,000.

The method most commonly used to compute depletion is the

straight-line method.

double-declining-balance method.

units-of-activity method.

effective interest method.