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5. A company purchased factory equipment on April 1, 2011 for $80,000. It is estimated that the equipment will have a $10,000 salvage value (S/V) at the end of its 10-year useful life. Using the straight-line (S/L) method of depreciation, the amount to be recorded as depreciation expense at December 31, 2011 is A) $8,000 B) $7,000 C) $5,250 D) $6,000. 6. On October 1, 2015, Holt Company places a new asset into service. The cost of the asset is $120,000 with an estimated 5-year life and S30,000 salvage value (S/V) at the end of its useful life. What is the depreciation expense for 2015 if Holt Company uses the straight-line (S/L) method of depreciation? A) $4,500 B) $24,000 C) $6,000 D) $12,000 7. Sargent Corporation bought equipment on January 1, 2015The equipment cost S360,000 and had an expected salvage value (S/V) of S60,000. The asset life of the equipment was estimated to be 6 years. The depreciation expense using the straight- line (S/L) method of depreciation is A) $70,000. B) $72,000. C) $50,000. D) None of these answer choices are correct of these answer choices are cormect 8. Equipment was purchased for $90,000. Freight charges amounted to $4,200 and there was a cost of $12,000 for installing the equipment. It is estimated that the equipment will have a S18,000 salvage value (S/V) at the end of its 5-year useful life. Depreciation expense each year using the straight-line method (S/L) will be A) $21,240. B) $17,640. C) $14,760. D) $14,400. Page 2

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