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Quiz Week 7 - Ed Anthony Pavia

# On foley co purchased machinery for 120000 salvage

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12. On April 13, 2006, Foley Co. purchased machinery for \$120,000. Salvage value was estimated to be \$5,000. The machinery will be depreciated over ten years using the double-declining balance method. If depreciation is computed on the basis of the nearest full month. Foley should record depreciation expense for 2007 on this machinery of a. \$20,800 b. \$20,400 c. \$20,550 d. \$20,933 13. A plant asset has a cost of \$24,000 and a salvage value of \$6,000. The asset has a three-year life. If depreciation in the third year amounted to \$3,000, which depreciation method was used? 14. George Martin Corporation purchased a depreciable asset for \$300,000 on January 1, 2005. The estimated salvage value is \$30,000, and the estimated useful life is 9 years. The straight-line method is used for depreciation. In 2008, George Martin changed its estimates to a total useful life of 5 years with a salvage value of \$50,000. What is the depreciation expense for 2008? 15. Lennon Corporation purchased a depreciable asset for \$200,000. The estimated salvage value is \$10,000, and the estimated useful life is 10,000 hours. Lennon used the asset for 1,100 hours in the current year. The activity

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method will be used for depreciation. What is the depreciation expense on this asset?
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