Question

In: Accounting

A piece of equipment cost $1,000, has a salvage value of $100, and a 5-year life....

A piece of equipment cost $1,000, has a salvage value of $100, and a 5-year life.

Use this information for questions 2-8.

2. Depreciation expense per year using the straight line method is

A. $180

B. $200

C. $500

D. $240

3. Using the straight line method, what is accumulated depreciation after 3 years?

A. $600

B. $480

C. $400

D. $540

4. Using Sum-of-the-Years' Digits, depreciation expense is

A. $333
B. $500
C. $300
D. $240

5. Using Sum-of-the-Years' Digits, the book value of the equipment after 3 years is

A. $216

B. $280

C. $460

D. $340

6. Using Declining Balance, depreciation expense for year 1 is

A. $400
B. $300
C. $250
D. $500

7. Using Declining Balance, depreciation expense in year 5 is (round each year's depreciation to the nearest dollar)

A. $30

B. $52

C. $44

D.$100

8. Regardless of what method you use, the book value at the end of year 5 will be

A. less than $100

B. $100

C. $200

D. more than $100

Expert Solution

ekkarill92 answered 2 years ago

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