1. On January 1, 2016, Halsted, Inc. purchased a new machine for $120,000. Its estimated useful life is eight years with an expected salvage value of $12,000. Assuming double-declining balance depreciation, 2017 depreciation expense is:

Select one:

A. $30,000

B. $20,250

C. $22,500

D. $27,000

2. On January 1, 2016, Melvin Company purchased a bottle-capping machine for $160,000. During its useful life, the company expects that the machine will cap 1,500,000 bottles. The machines expected salvage value is $10,000. During 2016, the machine capped 250,000 bottles and during 2017, the machine capped 300,000 bottles. Assuming units-of-production depreciation, 2017 depreciation expense is:

Select one:

A. $25,000

B. $26,666

C. $30,000

D. $32,000

3. On January 1, 2015, Burns Company purchased equipment for $172,000. Burns uses straight-line depreciation and estimates an eight-year useful life and a $12,000 salvage value. On December 31, 2019, Burns sells the equipment for $60,000. In recording this sale, Burns should reflect:

Select one:

A. A $6,000 loss

B. A $24,000 loss

C. A $12,000 loss

D. No gain or loss

4. Unless another amortization method is shown to be more appropriate, intangible assets are amortized using the:

Select one:

A. Straight-line method

B. Percentage depletion method

C. Double declining-balance method

D. Units-of-production method