Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $5,000 at the end of five years.
Using the double-declining balance method, depreciation expense for 2022 would be:
A) $22,000.
B) $13,200.
C) $14,400.
D) $24,000.
Answer: C
Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year life, with a residual value of $5,000 at the end of five years.
Using the double-declining balance method, the book value at December 31, 2022, would be:
A) $21,600.
B) $24,800.
C) $36,000.
D) $45,600.
Answer: A
A machine has a cost of $15,000, an estimated residual value of $3,000, and an estimated useful life of four years. The machine is being depreciated on a straight-line basis. At the end of the second year, what amount will be reported for accumulated depreciation?
A) $9,000.
B) $6,000.
C) $7,500.
D) $3,000.
Answer: B