Reference no: EM132924459
Question -
Q1. On January 2, 2017, a machine was purchased for $180,000. It has an estimated useful life of ten years and an estimated residual value of $14,000. Using the double declining-balance method, calculate depreciation for 2018?
Q2. A vehicle purchased for $50,000 has an estimated useful life of five years and a residual value of $3,800. It is expected to be driven 210,000 kilometres over its useful life. The asset was driven 45,000 kilometres in the second year. Using the units of production method, calculate depreciation for the second year.
Q3. A machine costing $72,000, estimated useful life of five years, and residual value of $12,000, is depreciated by the straight-line method. This asset is sold for $50,000 at the end of the second year of use. Calculate the gain or loss on the disposal?