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1)Corp sold its six-year-old machine to Tommy Inc. for $580,000. The machine originally cost $950,000, had an estimated useful life of 10 years, and a salvage value of $150,000. Assuming the machine was depreciated using straight-line depreciation, what was the gain/loss on sale of the machine at the end of the sixth year?

	A	Gain of $110,000
	B	Loss of $370,000
	C	None of the other answers
	D	Loss of $110,000
	E	Gain of $100,000

2) Company purchased equipment for $30,000. The equipment is estimated to last five years with the residual value at the end of the service life expected to be $2,900. The equipment was in operation for 4,200 hours in the second year and the company expects the equipment to operate a total of 20,000 hours. What is the Depreciation Expense for the second year of the equipments use, assuming the use of activity-based costing?

A		$5,691
B		Not enough information
C		$6,300
D		$5,420
E		None of the other answers

3) July 1, 2012, TopangaCorp bought a machine for $400k. On January 1, 2017, it sold it for $280k, and recorded a $30k Loss upon the sale. TopangaCorp always used straight-line depreciation for its long-term tangible assets, and never recorded an impairment on this asset. What was TopangaCorps FY2014 depreciation expense for this machine?

A		$10k
B		$20k
C		Not enough information
D		$15k
E		None of the other answers

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