# upload paper - \$90,000 \$25,000 = \$65,000 3 Pearson Company...

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1) The term applied to the periodic expiration of a plant asset’s cost is C. depreciation. 2) Mitchell Corporation bought equipment on January 1, 2010. The equipment cost \$90,000 and had an expected salvage value of \$15,000. The life of the equipment was estimated to be 6 years. The book value of the equipment at the beginning of the third year would be B. \$65,000. (90,000 - 15,000) = \$65,000 (65,000 / 6) = \$12,500 (\$12,500 X 2 ) = \$25,000
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Unformatted text preview: \$90,000 - \$25,000 = \$65,000 3) Pearson Company bought a machine on January 1, 2010. The machine cost \$72,000 and had an expected salvage value of \$12,000. The life of the machine was estimated to be 5 years. The depreciation expense using the straight-line method of depreciation is C. \$12,000. (\$72,000 - \$12,000) = \$60,000 \$60,000 / 5 = \$12,000 Source(s): 35 years of accounting experience...
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