Question

Jemima Ltd. purchased factory equipment for $200,000, and estimated that the equipment will have a $20,000 residual value at the end of its estimated 5-year useful life. If Jemima uses the double diminishing-balance method of depreciation, the depreciation expense for the second year after purchase would be

Question options:

	1) $43,200.
	2) $48,000.
	3) $72,000.
	4) $80,000.

Question 30

1 / 1 point

A machine that cost $72,000 has an estimated residual value of $6,000 and an estimated useful life of 5 years or 30,000 hours. Using the units-of-production method, the depreciation expense for the second year, during which the machine was used 5,000 hours, would be

Question options:

	1) $14,400.
	2) $13,200.
	3) $12,000.
	4) $11,000.

Question 31

1 / 1 point

On April 1, 2018, Check Mate Ltd. places a new asset into service. The cost of the asset is $40,000 with an estimated 8-year life and $2,500 residual value. Assuming that Check Mate uses the double diminishing-balance method of depreciation, what is the carrying amount of the asset at December 31, 2018?

Question options:

	1) $32,500
	2) $30,625
	3) $38,125
	4) $35,000

Answer 1