A company is depreciating a $1,000,000 building using a straight-line rate of 5%. The building has an estimated residual value of $200,000. What would the amount of depreciation be in the first year using the straight-line method and the double-declining balance method? Straight-line Double-declining balance $40.000 $80,000 $40.000 $100,000 $50,000 $80,000 $50.000 $100,000 If management wanted to show an increasing income over the life of an asset which method of depreciation should they choose? Capital cost allowance Declining-balance Units-of-activity Straight-line Adepreciable asset with a cost of $42.500 has a residual value of $2,500 and a useful life of 8 years. Total estimated units of output are 80,000 and in year 1.5.200 units were produced. Under the straight-line method and the units-of-activity method the depreciation expense for the first year would be Straight line Units-of-activity $5,000.00 $2.600.00 $5,000.00 $2,762,50 $5,312.50 $2.600.00 $5,312.50 $2.762.50 On July 1, 2017 a truck was sold for $10.000 The company originally paid $28.000 on June 30, 2010 and has recorded accumulated depreciation on it to date of $15,000. The entry to record the sale would include a credit to accumulated depreciation for $15,000 debit to trucks for $28,000 credit to gain on sale of truck for $3.000 debit to loss on sale of truck for $3,000