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 2021 would be:
A) $24,000.
B) $22,000.
C) $19,000.
D) $20,000.
Answer: A
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 straight-line method, depreciation expense for 2022 and the book value at December 31, 2022, would be:
A) $12,000 and $36,000.
B) $12,000 and $31,000.
C) $11,000 and $33,000.
D) $11,000 and $38,000.
Answer: D
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 straight-line method, the book value at December 31, 2021, would be:
A) $44,000.
B) $49,000.
C) $55,000.
D) $60,000.
Answer: B
