Question $5(4$ points$)$

On January $1,2021$ Advantage Co$.$ purchased a new machine for $$4,500.$ The machine has a useful life of $5$ years, and a residual value of $$500.$ It is estimated that the machine will produce $4,000$ units over its lifetime $(1,500$ units in $2021$; $1,000$ units in $2022$; $500$ units each remaining year$).$ Advantage closes its books once a year, on December $31$st$.$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

If Advantage uses the Straight$-$Line Method of depreciation, how much accumulated depreciation will Advantage recognize on its $12/31/2021$ Balance Sheet in relation to this machine?

Question $5$ options:

$$1,080$

$$800$

$$1,600$

$$1,118$

Question $6(4$ points$)$

On January $1,2021$ Advantage Co$.$ purchased a new machine for $$4,500.$ The machine has a useful life of $5$ years, and a residual value of $$500.$ It is estimated that the machine will produce $4,000$ units over its lifetime $(1,500$ units in $2021$; $1,000$ units in $2022$; $500$ units each remaining year$).$ Advantage closes its books once a year, on December $31$st$.$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

If Advantage uses the Straight$-$Line Method of depreciation, how much accumulated depreciation will Advantage recognize on its $12/31/2022$ Balance Sheet in relation to this machine?

Question $6$ options:

$$0$

$$1,000$

$$1,600$

$$800$

Question $7(4$ points$)$

On January $1,2021$ Advantage Co$.$ purchased a new machine for $$4,500.$ The machine has a useful life of $5$ years, and a residual value of $$500.$ It is estimated that the machine will produce $4,000$ units over its lifetime $(1,500$ units in $2021$; $1,000$ units in $2022$; $500$ units each remaining year$).$ Advantage closes its books once a year, on December $31$st$.$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

If Advantage uses the Units$-$of$-$Activity Method of depreciation, what journal entry would Advantage record on December $31,2021$ in relation to depreciation of this machine?

Question $7$ options:

Dr$.$ Accumulated Depreciation $$1,500$

Cr$.$ Depreciation Expense $$1,500$

Dr$.$ Depreciation Expense $$1,000$

Cr$.$ Accumulated Depreciation $$1,000$

Dr$.$ Depreciation Expense $$1,000$

Cr$.$ Machine $($PPE$)$ $$1,000$

Dr$.$ Depreciation Expense $$1,500$

Cr$.$ Accumulated Depreciation $$1,500$

Question $8(4$ points$)$

On January $1,2021$ Advantage Co$.$ purchased a new machine for $$4,500.$ The machine has a useful life of $5$ years, and a residual value of $$500.$ It is estimated that the machine will produce $4,000$ units over its lifetime $(1,500$ units in $2021$; $1,000$ units in $2022$; $500$ units each remaining year$).$ Advantage closes its books once a year, on December $31$st$.$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

If Advantage uses the Units$-$of$-$Activity Method of depreciation, what journal entry would Advantage record on December $31,2022$ in relation to depreciation of this machine?

Question $8$ options:

Dr$.$ Depreciation Expense $$1,500$

Cr$.$ Accumulated Depreciation $$1,500$

Dr$.$ Depreciation Expense $$1,500$

Cr$.$ Machine $($PPE$)$ $$1,500$

Dr$.$ Accumulated Depreciation $$1,000$

Cr$.$ Depreciation Expense $$1,000$

Dr$.$ Depreciation Expense $$1,000$

Cr$.$ Accumulated Depreciation $$1,000$

Question $9(4$ points$)$

On January $1,2021$ Advantage Co$.$ purchased a new machine for $$4,500.$ The machine has a useful life of $5$ years, and a residual value of $$500.$ It is estimated that the machine will produce $4,000$ units over its lifetime $(1,500$ units in $2021$; $1,000$ units in $2022$; $500$ units each remaining year$).$ Advantage closes its books once a year, on December $31$st$.$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

If Advantage uses the Units$-$of$-$Activity Method of depreciation, how much depreciation expense will Advantage recognize on its $2021$ Income Statement in relation to this machine?

Question $9$ options:

$$1,000$

$$0$

$$1,500$

$$800$

Question $10(4$ points$)$

On January $1,2021$ Advantage Co$.$ purchased a new machine for $$4,500.$ The machine has a useful life of $5$ years, and a residual value of $$500.$ It is estimated that the machine will produce $4,000$ units over its lifetime $(1,500$ units in $2021$; $1,000$ units in $2022$; $500$ units each remaining year$).$ Advantage closes its books once a year, on December $31$st$.$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

If Advantage uses the Units$-$of$-$Activity Method of depreciation, how much depreciation expense will Advantage recognize on its $2022$ Income Statement in relation to this machine?

Question $10$ options:

$$1,000$

$$1,500$

$$0$

$$800$