Kansas Enterprises purchased equipment for $60,000 on January 1,2015. The equipment is expected to have a five-year life, with aresidual value of $5,000 at the end of five years.
(1) Using the straight-line method, depreciation expense for 2015would be: $
(2) Using the double-declining balance method, depreciation expensefor 2016 would be: $
7 / 10
4. Crestview Estates purchased a tractor on January 1, 2015, for$65,000. The tractor’s useful life is estimated to be 30,000 milesand has a residual value of $5,000. If Crestview used the tractor5,000 miles in 2015 and 3,000 miles in 2016, what is the balancefor accumulated depreciation at the end of 2016 using theactivity-based method?
$
5. The Surf’s Up issues 2,000 shares of 5%, $100 par valuepreferred stock at the beginning of 2014. All remaining shares arecommon stock. The company was not able to pay dividends in 2014,but plans to pay dividends of $28,000 in 2015. Assuming thepreferred stock is cumulative.
(1) The annual cash dividend normally paid to preferred stockis:
$
(2) The cash dividend paid to common stockholders in 2015 is:
$
