2.On July 1, 2015, Jackson Company purchased equipment for $400,000, and installation and testing costs 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:
3.Hatfield 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 thebeginning 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 depreciation. What is the depreciation expense for 2015?
4.To be classified as a plant asset, an asset must (mark all that apply). Each incorrect answer results in a negative point mark.