Reference no: EM132672321

Problem 1: On January 3, 2018, City Corp. purchased machinery. The machinery has an estimated useful life of eight years and an estimated residual value of $67,500. City uses straight-line depreciation for all their machinery, and recorded $115,500 depreciation expense for 2020. The acquisition cost of the machinery was

Select one:

a. $991,500
b. $924,000
c. $856,500
d. $655,500

Problem 2: On March 24, 2019, Dagger Ltd. purchased a new machine for $50,000. This machine has an eight-year estimated useful life, an estimated residual value of $2,500, and is expected to produce 95,000 units over its useful life. The machine produced 5,500 units in 2019 and 6,500 units in 2020. Using the unit of production method, to the nearest dollar, the related Accumulated Depreciation account on the adjusted trial balance at December 31, 2020 would be

Select one:

a. $6,500
b. $3,250
c. $6,000
d. $6,316