QUESTION 1-

A machine was purchased for $70,000. It has a useful life of 6 years and a residual value of $10,000. Under the straight-line method, what is the annual depreciation expense?

[ Choose ] Not Enough Information $12,000 Gain $4,800 $1,000 Gain $12,000 Loss $1,000Loss $15,000 $10,000 $12,000

A machine with a useful life of 5 years and a residual value of $4,000 was purchased for $20,000. What is depreciation expense for the second year under the declining balance method?

[ Choose ] Not Enough Information $12,000 Gain $4,800 $1,000 Gain $12,000 Loss $1,000Loss $15,000 $10,000 $12,000

A company has a machine that it paid $20,000. The accumulated depreciation for the machine is $6,000. If they sell the machine for $2,000, how much gain or loss do they recognize?

[ Choose ] Not Enough Information $12,000 Gain $4,800 $1,000 Gain $12,000 Loss $1,000Loss $15,000 $10,000 $12,000

A company has a machine that it paid $20,000. The accumulated depreciation for the machine is $19,000. If they sell the machine for $2,000, how much gain or loss do they recognize?

[ Choose ] Not Enough Information $12,000 Gain $4,800 $1,000 Gain $12,000 Loss $1,000Loss $15,000 $10,000 $12,000

If a piece of land is purchased for $10,000 and the purchaser has to also pay $2,000 to remove an old building from the property, the purchaser needs to record it on its books as an asset for what amount?

[ Choose ] Not Enough Information $12,000 Gain $4,800 $1,000 Gain $12,000 Loss $1,000Loss $15,000 $10,000 $12,000

A machine with a useful life of 10 years and a residual value of $0 was purchased for $50,000. What is accumulated depreciation after the third year under the straight-line method?

[ Choose ] Not Enough Information $12,000 Gain $4,800 $1,000 Gain $12,000 Loss $1,000Loss $15,000 $10,000 $12,000

QUESTION 2-

A machine was on purchased on September 30th for $500,000 with a residual value of $45,000. The company estimates that the machine will last 7 years and produce 2,000,000 parts over its life.

Calculate depreciation expense using the Straight-Line method for the 5-year life. (NOTE: Round your answers to the nearest dollar and enter it enter it WITHOUT decimals, commas or dollar signs [Example 75000].)

1. Year 1 - __$
2. Year 2 - __$
3. Year 3 - __$
4. Year 4 - __$
5. Year 5 - __$
6. Year 6 - __$