Question: Use the following data for the questions <40 41>. On July 1, 20x1, Max company acquired equipment for $1,500,000. Its estimated life was 5 years

Use the following data for the questions <40 41>.

On July 1, 20x1, Max company acquired equipment for $1,500,000. Its estimated life was 5 years or 40,000 hours. The residual value was estimated as $100,000.

40. What was the balance in Accumulated Depreciation on December 31, 20x2 if Max company used the S/L method?

A. $140,000

B. $280,000

C. $420,000

D. $560,000

Your answer (A, B, C, or D)

Show your calculation in detail.

41. What was the balance in Accumulated Depreciation on December 31, 20x2 if Max company used the DDB method?

A. $300,000

B. $600,000

C. $780,000

D. None of the above

Your answer (A, B, C, or D)

Show your calculation in detail.

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