Reference no: EM133042940

Questions -

Q1. A machine with a cost of $90,000 has an estimated residual value of $8,000 and an estimated life of 4 years or 25,000 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method?

Q2. According to a summary of the payroll of Scotland Company, $450,000 was subject to the 6.0% social security tax and $500,000 was subject to the 1.5% Medicare tax. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. The journal entry to record accrued salaries would include a

a. debit to Salary Payable of $450,000

b. credit to Salary Payable of $500,000

c. credit to Salary Expense of $450,000

d. debit to Salary Expense of $500,000