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1 A company purchased factory equipment on April 1, 2022 for $160,000. It is estimated that the equipment will have a $20,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2022 is A) $ 16,000 14,000 10,500 12,000 None of the above

1 A company purchased factory equipment on April 1, 2022 for $160,000. It is estimated that the equipment will have a $20,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2022 is A) $ 16,000 14,000 10,500 12,000 None of the above

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 8P: Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of...
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1 A company purchased factory equipment on April 1, 2022 for $160,000. It is estimated that the equipment will have a $20,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2022 is A) $ 16,000 B) $ 14,000 C) $ 10,500 D $ 12,000 E) None of the above 2 If an asset costs $41,000, has a residual value of $3,000, and has a useful life of five years, the entry to record depreciation in the second year, using the double-declining-balance method, is $ 9,430 A) Depreciation Expense Cash $ B) Depreciation Expense Accumulated Depreciation - Asset $ C) Depreciation Expense Accumulated Depreciation - Asset $ D) Accumulated Depreciation - Asset Depreciation Expense E) None of the above 3 Equipment is purchased for $120,000. It has a five-year useful life and a $20,000 residual value. Under the double declining balance method, what is the depreciation expense for year 3? A) $ 17,280 $ 15,360 $ 14,400 12,800 None of the above ABCDE 好好 B) C) D) $ 9,840 10,250 $ 10,660 $ 9,430 9,840 neo $ 10,250 $ 10,660 no 220
Transcribed Image Text:1 A company purchased factory equipment on April 1, 2022 for $160,000. It is estimated that the equipment will have a $20,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2022 is A) $ 16,000 B) $ 14,000 C) $ 10,500 D $ 12,000 E) None of the above 2 If an asset costs $41,000, has a residual value of $3,000, and has a useful life of five years, the entry to record depreciation in the second year, using the double-declining-balance method, is $ 9,430 A) Depreciation Expense Cash $ B) Depreciation Expense Accumulated Depreciation - Asset $ C) Depreciation Expense Accumulated Depreciation - Asset $ D) Accumulated Depreciation - Asset Depreciation Expense E) None of the above 3 Equipment is purchased for $120,000. It has a five-year useful life and a $20,000 residual value. Under the double declining balance method, what is the depreciation expense for year 3? A) $ 17,280 $ 15,360 $ 14,400 12,800 None of the above ABCDE 好好 B) C) D) $ 9,840 10,250 $ 10,660 $ 9,430 9,840 neo $ 10,250 $ 10,660 no 220
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