ACCTSol80.pdf - 37 Award 1.00 point Helen's Corporation...

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37. Award: 1.00 point 38. Award: 1.00 point Helen's Corporation purchased factory equipment on July 1, 2015 for $48,000. It is estimated that the equipment will have a $6,000 residual value at the end of its 10-year useful life. The market value of the equipment is $55,000. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2015 is: $4,200 $4,800 $4,900 $6,000 None of the other alternatives are correct ($48,000 - $6,000)/10 years = $4,200/year for half the year = $2,100. A company purchased a delivery truck for $60,000 at the beginning of Year 1. At the time of purchase it is estimated that the truck will have a $10,000 residual value at the end of its estimated 5-year useful life. In the middle of Year 3 the engine needed to be replaced at a cost of $4,500. The estimated life of the asset is now 5 years with a residual value of $4,500. What is the total Accumulated Depreciation at the end of Year 3 for this truck if straight line depreciation is used?
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