1 ). Mohr Company purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 5 years with a $4,000 salvage value. Depreciation expense in year 2 is:

1. $4,800.
2. $8,000.
3. $9,600.
4. $5,760.

2). Mohr Company purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 5 years with a $4,000 salvage value. The machine’s book value at the end of year 2 is:

1. $12,000.
2. $7,200.
3. $9,600.
4. $8,640.

3). Victory Company purchases office equipment at the beginning of the year at a cost of $15,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 7 years with a $1,000 salvage value. The journal entry to record the first year’s depreciation is:

1. Debit Depreciation Expense $2,143, credit Accumulated Depreciation $2,143.
2. Debit Depreciation Expense $2,000, credit Office Equipment $2,000.
3. Debit Office Equipment $2,000, credit Accumulated Depreciation $2,000.
4. Debit Accumulated Depreciation $2,143; credit Office Equipment $2,143.

Answer rating: 100% (QA)

1 Compute depreciation expense as follows Double declining depreciation rate 1useful life x 2 15 yea... View the full answer