1 ). Mohr Company purchases a machine at the beginning of the year at a cost of...
Question:
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:
- $4,800.
- $8,000.
- $9,600.
- $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:
- $12,000.
- $7,200.
- $9,600.
- $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:
- Debit Depreciation Expense $2,143, credit Accumulated Depreciation $2,143.
- Debit Depreciation Expense $2,000, credit Office Equipment $2,000.
- Debit Office Equipment $2,000, credit Accumulated Depreciation $2,000.
- Debit Accumulated Depreciation $2,143; credit Office Equipment $2,143.
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann