A company purchased a machine for $100,000 on October 1, 2021. The estimated service life is 10 years with a $10,000 residual value. The company records partial-year depreciation based on the number of months in service. Depreciation expense for the year ended December 31, 2021, using straight-line depreciation, is:
A) $1,500.
B) $7,500.
C) $2,250.
D) $2,500.
Answer: C
A company purchased a delivery truck on January 1, 2021, for $100,000. The truck has an estimated life of 10 years and an estimated residual value of $10,000. If the company uses double-declining balance, what would be the book value of the truck after two years?
A) $64,000.
B) $76,000.
C) $82,000.
D) $54,000.
Answer: A
A company purchased a delivery truck on January 1, 2021, for $65,000. The truck has an estimated life of 10 years and an estimated residual value of $5,000. If the company uses straight-line depreciation, what would be the book value after four years?
A) $41,000.
B) $60,000.
C) $36,000.
D) $24,000.
Answer: A
