ACCT 701 Module 5 Assessment Review 2018.docx - Module 5 Assessment Review 2018 9\/9 Question 1 On 2015 January 1 Jackson Company purchased equipment for

ACCT 701 Module 5 Assessment Review 2018.docx - Module 5...

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Module 5 Assessment Review 2018 9/9 Question 1On 2015 January 1, Jackson Company purchased equipment for $400,000, and installation and testing costs totalled $40,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $40,000. If Jackson uses the straight-line depreciation method, the depreciation expense for 2015 is: Select one:a. $36,000.b. $80,000.c. $44,000.d. $88,000.e. $40,000. Question 2On July1, 2015, Jackson Company purchased equipment for $400,000, and installation and testingcosts totaled $40,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $40,000. If Jackson uses the double-declining-balance method, the depreciation expense for 2015 would be: Question 3Hatfield Company purchased a computer on January 1, 2013 for $10,000. The computer had an estimated salvage value of $3,000 and an estimated useful life of five years. At the beginning of 2015, the estimated salvage value changed to $1,000, and the computer is expected to have a remaining useful life of two years. The company always uses the straight-line method of

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