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8. B Company purchased a machine for $5,000. The original estimated useful life was four...

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Accounting

8. B Company purchased a machine for $5,000. The original estimated useful life was four years, with an estimated residual value of $1,000. B Company has depreciated the machine for 2 years using the straight-line method. B Company has now decided that the estimated useful life should be increased by three years, and that the residual value should be reduced to $250. How much depreciation should B Company now record in each remaining year of the machines life?

a. $350

b. $450

c. $400

d. $550

9. The recording of an ordinary repair will increase the carrying value of the asset repaired.

a. True b. False

10. Which of the following accounts would not be appropriate to debit for the cost of an extraordinary building repair?:

a. the Building' account

b. the 'Accumulated Depreciation, Building' account

c. the 'Repairs and Maintenance Expense' account

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