11. A company used straight-line depreciation for an item of equipment that cost $16,000, had a...

11. A company used straight-line depreciation for an item of equipment that cost $16,000, had a salvage value of $2,000 and a five-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $500 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life:

Select one:

a. $7,100

b. $3,550

c. $2,000

d. $2,800

e. $500

12. Ngu owns equipment that cost $90,000 with accumulated depreciation of $64,000. Ngu sells the equipment for $33,000. Compute the amount of gain or loss on the sale.

Select one:

a. $7,000 gain

b. No gain or loss is recognized

c. $57,000 loss

d. $7,000 loss

e. $33,000 gain

Expert Solution

ekkarill92 answered 2 years ago

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