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On January 1 2014 Wasson Company purchased a delivery vehicle costing $46600 The vehicle has an estimated 8-year life and a $3400 residual value What is the vehicle's book value as of December

On January 1, 2014, Wasson Company purchased a delivery vehicle costing $46,600. The vehicle has an estimated 8-year life and a $3,400 residual value. What is the vehicle's book value as of December 31, 2015, assuming Wasson uses the straight-line depreciation method?

  $35,800.
  $32,400.
  $10,800.
 

$37,800.

44.)

Carter Company disposed of an asset at the end of the eighth year of its estimated life for $11,500 cash. The asset's life was originally estimated to be 10 years. The original cost was $53,300 with an estimated residual value of $5,300. The asset was being depreciated using the straight-line method. What was the gain or loss on the disposal?

  $3,400 loss.
  $1,900 loss.
  $6,700 gain.
 

$11,500 gain.

45.)

Amanda Company purchased a computer that cost $12,000. It had an estimated useful life of three years and a residual value of $2,000. The computer was depreciated by the straight-line method and was sold at the end of the third year of use for $5,920 cash. Which of the following statements correctly describes the computer sale?

  Assets and stockholdersAc€?c equity both increase by $5,920.
  Assets decrease $5,920 and stockholdersAc€?c equity is not affected.
  Assets and stockholdersAc€?c equity both decrease by $3,920.
 

Assets and stockholdersAc€?c equity both increase by $3,920.

46.)

Williams Company purchased a machine costing $42,600 and is depreciating it over a 10-year estimated useful life with a residual value of $4,600. At the beginning of the eighth year, a major overhaul on it was completed at a cost of $9,600, and the total estimated useful life was changed to 12 years with the residual value unchanged. How much is the year 8 depreciation expense assuming use of the straight-line depreciation method?

  $9,600.
  $5,720.
  $4,200.
 

$3,800.

Jun 19 2020 View more View Less

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