If an asset cost $48,000 and has a residual value of $8,000 and a useful life...

If an asset cost $48,000 and has a residual value of $8,000 and a useful life of eight years, the depreciation in the third year, using the double-declining balance method, would be (assume a full year of depreciation in the first year):

		a. $5,625
		b. $9,000
		c. $12,000
		d. $6,750

A building was purchased for $250,000 and has a useful life of 20 years, and a residual value of $50,000. After it has been used 4 years, its accumulated depreciation using the straight line method would be (assume a full year of depreciation in the first year):

		a. $40,000
		b. $50,000
		c. $10,000
		d. $12,500

Massachusetts Mining Company purchased a gravel pit for $2,800,000. It is estimated that 8 million tons of gravel can be extracted over the pit's useful life, with a residual value of $400,000. If 3 million tons are extracted and sold during the first year, how much depletion expense should be recorded?

		a. $1,050,000
		b. $1,800,000
		c. $1,000,000
		d. $900,000

An asset is purchased for $20,000. It has an estimated residual value of $5,000 and an estimated useful life of ten years. After three years of use, the estimated residual value is revised to $4,000. Assuming straight-line depreciation, depreciation expense in year four of use would be (round your answer to the nearest whole dollar):

		a. $2,286
		b. $1,643
		c. $2,100
		d. $1,150

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ekkarill92 answered 1 year ago

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