| | $142,800 On January 1, 2011, a company purchased a machine for $138,000. In addition, the company paid delivery costs of $1,200 and $4,800 to have the machine installed. At the end of 5 years, the company expects the machine to have a residual value of $11,500. The company expects the machine will last 10,000 hours. In the first year, the company used the machine for 3,000 hours. (Use these facts to answer questions 3 8) Regardless of the depreciation method, what will be the amount of accumulated depreciation after the five years? Question 4 options: | | $128,500 | | | $130,000 | | | $132,500 | | | $135,000 On January 1, 2011, a company purchased a machine for $138,000. In addition, the company paid delivery costs of $1,200 and $4,800 to have the machine installed. At the end of 5 years, the company expects the machine to have a residual value of $11,500. The company expects the machine will last 10,000 hours. In the first year, the company used the machine for 3,000 hours. (Use these facts to answer questions 3 8) If the company used straight line method for depreciation, how much depreciation expense would be recorded in the first year? Question 5 options: | | $30,000 | | | $28,000 | | | $29,500 | | | $26,500 On January 1, 2011, a company purchased a machine for $138,000. In addition, the company paid delivery costs of $1,200 and $4,800 to have the machine installed. At the end of 5 years, the company expects the machine to have a residual value of $11,500. The company expects the machine will last 10,000 hours. In the first year, the company used the machine for 3,000 hours. (Use these facts to answer questions 3 8) If the company used units of production method for depreciation, how much depreciation expense would be recorded in the first year? Question 6 options: | | $40,500 | | | $43,750 | | | $39,750 | | | $54,500 On January 1, 2011, a company purchased a machine for $138,000. In addition, the company paid delivery costs of $1,200 and $4,800 to have the machine installed. At the end of 5 years, the company expects the machine to have a residual value of $11,500. The company expects the machine will last 10,000 hours. In the first year, the company used the machine for 3,000 hours. (Use these facts to answer questions 3 8) If the company used double declining balance method for depreciation, how much depreciation expense would be recorded in the first year? Question 7 options: | | $57,600 | | | $60,400 | | | $40,300 | | | $55,430 On January 1, 2011, a company purchased a machine for $138,000. In addition, the company paid delivery costs of $1,200 and $4,800 to have the machine installed. At the end of 5 years, the company expects the machine to have a residual value of $11,500. The company expects the machine will last 10,000 hours. In the first year, the company used the machine for 3,000 hours. (Use these facts to answer questions 3 8) If the company sells the machine at the end of 5 years and receives $11,000, the journal entry to record the sale will include which of the following? Question 8 options: | | Debit to Accumulated Depreciation for $138,000 | | | Credit to Machine for $138,000 | | | Debit to Loss on Sale for $500 | | | Credit to Gain for $500 | | | | | |
