upload paper

upload paper - $90,000 - $25,000 = $65,000 3) Pearson...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

Ask a homework question - tutors are online