### What is the depreciation base of this asset

Assignment Help Accounting Basics
##### Reference no: EM13133869

1. A Company purchased a depreciable asset for \$120,000. The estimated salvage value is \$10,000, and the estimated useful life is 10 years. The straight-line method will be used for depreciation. What is the depreciation base of this asset?
a. \$11,000
b. \$12,000
c. \$110,000
d. \$120,000

2. S Products purchased a machine for \$39,000 on July 1, 2012. The company intends to depreciate it over 4 years using the double-declining balance method. Salvage value is \$3,000. Depreciation for 2012 is
a. \$19,500
b. \$9,750
c. \$14,625
d. \$9,000

3. G Corporation purchased a truck at the beginning of 2012 for \$90,000. The truck is estimated to have a salvage value of \$3,600 and a useful life of 120,000 miles. It was driven 18,000 miles in 2012 and 32,000 miles in 2013. What is the depreciation expense for 2012?
a. \$13,500
b. \$12,960
c. \$21,600
d. \$36,000

4. A plant asset has a cost of \$32,000 and a salvage value of \$8,000. The asset has a three-year life. If depreciation in the third year amounted to \$4,000, which depreciation method was used?
a. Straight-line
b. Declining-balance
c. Sum-of-the-years'-digits
d. Cannot tell from information given

5. A Corporation, which has a calendar year accounting period, purchased a new machine for \$60,000 on April 1, 2008. At that time Orton expected to use the machine for nine years and then sell it for \$6,000. The machine was sold for \$33,000 on Sept. 30, 2013. Assuming straight-line depreciation, no depreciation in the year of acquisition, and a full year of depreciation in the year of retirement, the gain to be recognized at the time of sale would be
a. \$6,000.
b. \$4,500.
c. \$3,000.
d. \$0.

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