A company purchased office equipment for $130,000 on Mar, 2021. The estimated service life is four years with a $40,000 residual value. The company records partial-year depreciation based on the number of months in service. The balance of accumulated depreciation for the year ended December 31, 2022, using straight-line depreciation, is:
A) $41,250.
B) $22,500.
C) $88,750.
D) $18,750.
Answer: A
A company purchased a computer system at a cost of $40,000. The estimated useful life is 10 years, and the estimated residual value is $5,000. Assuming the company uses the double-declining-balance method, what is the depreciation expense for the second year?
A) $8,000.
B) $7,000.
C) $5,600.
D) $6,400.
Answer: D
Best Construction purchased a delivery truck on June 1, 2021. The following information is available:
Cost = $90,000
Estimated service life = 5 years
Estimated residual value = $15,000
Calculate the balance of accumulated depreciation for the year ended December 31, 2022, using straight-line depreciation.
A) $21,250.
B) $17,500.
C) $23,750.
D) $30,000.
Answer: C
