Reference no: EM132087413

Questions -

1. Assume an asset purchased on January 1, 20-- costs $5,000, has an expected life of five years and has an expected salvage value of $500. Using the straight-line method, compute the depreciation for each year.

2. Assume an asset cost $11,000 and was purchased on January 1, 20--. The asset is assume to have a useful life o five years and a salvage value of $1,000. Using the double-declining-balance method, compute depreciation expense for each year.

3. Assume an asset costing $7,900 was purchased on September 17, 20--. The asset is assumed to have a useful life of five years and a salvage value of $400. Using the sum-of-the-years'-digits method, compute depreciation expense for each year. Remember assets acquired after the fifteenth are not depreciated until the next month.

4. Assume an asset costing $9,000 was purchased January 1, 20--. The asset is assumed to produce 34,000 units and have a salvage value of $500. The first year, 12,000 units were produced; the second year, 8,000 units; the third year, 14000 units. Using the units-of-production method, compute depreciation expense for each year.