A machine originally had an estimated useful life of 5

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Reference no: EM13480202

Cardco Inc. has an annual accounting period which ends on December 31. During the current year a depreciable asset which cost $42,000 was purchased on September 2. The asset has a $4,000 estimated salvage value. The company uses straight-line depreciation and expects the asset to have a 5 year life. What is the total depreciation expense for the current year?

$1,900.00
$7,600.00
$2,533.33
$2,800.00
$3,166.67

A machine originally had an estimated useful life of 5 years, but after 3 complete years, it was decided that the original estimate of useful life should have been 10 years. At that point the remaining cost to be depreciated should be allocated over the remaining:

2 years
5 years
7 years
8 years
10 years

On December 31, 2010, Stable Company sold a piece of equipment that was purchased on January 1, 2005. The equipment originally cost $820,000 and has an estimated useful life of eight years. Stable uses the straight-line method of depreciation. What is the gain/loss on the sale of equipment that Stable will recognize if the equipment was sold for $230,000?

$230,000 Gain
$25,000 Loss
$25,000 Gain
$73,750 Gain
$0; no gain or loss

Reference no: EM13480202

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