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On January 1, 2011, a company purchased a machine for $138,000. In addition, the company paid delivery costs of $1,200 and $4,800 to have the machine installed. At the end of 5 years, the company expects the machine to have a residual value of $11,500. The company expects the machine will last 10,000 hours. In the first year, the company used the machine for 3,000 hours. (Use these facts to answer questions 3 8)

Before depreciating the machine, what total amount will the company record as an asset for this machine?

Question 3 options:

	$144,000
	$138,000
	$139,200
	$142,800 On January 1, 2011, a company purchased a machine for $138,000. In addition, the company paid delivery costs of $1,200 and $4,800 to have the machine installed. At the end of 5 years, the company expects the machine to have a residual value of $11,500. The company expects the machine will last 10,000 hours. In the first year, the company used the machine for 3,000 hours. (Use these facts to answer questions 3 8) Regardless of the depreciation method, what will be the amount of accumulated depreciation after the five years? Question 4 options: $128,500 $130,000 $132,500 $135,000 On January 1, 2011, a company purchased a machine for $138,000. In addition, the company paid delivery costs of $1,200 and $4,800 to have the machine installed. At the end of 5 years, the company expects the machine to have a residual value of $11,500. The company expects the machine will last 10,000 hours. In the first year, the company used the machine for 3,000 hours. (Use these facts to answer questions 3 8) If the company used straight line method for depreciation, how much depreciation expense would be recorded in the first year? Question 5 options: $30,000 $28,000 $29,500 $26,500 On January 1, 2011, a company purchased a machine for $138,000. In addition, the company paid delivery costs of $1,200 and $4,800 to have the machine installed. At the end of 5 years, the company expects the machine to have a residual value of $11,500. The company expects the machine will last 10,000 hours. In the first year, the company used the machine for 3,000 hours. (Use these facts to answer questions 3 8) If the company used units of production method for depreciation, how much depreciation expense would be recorded in the first year? Question 6 options: $40,500 $43,750 $39,750 $54,500 On January 1, 2011, a company purchased a machine for $138,000. In addition, the company paid delivery costs of $1,200 and $4,800 to have the machine installed. At the end of 5 years, the company expects the machine to have a residual value of $11,500. The company expects the machine will last 10,000 hours. In the first year, the company used the machine for 3,000 hours. (Use these facts to answer questions 3 8) If the company used double declining balance method for depreciation, how much depreciation expense would be recorded in the first year? Question 7 options: $57,600 $60,400 $40,300 $55,430 On January 1, 2011, a company purchased a machine for $138,000. In addition, the company paid delivery costs of $1,200 and $4,800 to have the machine installed. At the end of 5 years, the company expects the machine to have a residual value of $11,500. The company expects the machine will last 10,000 hours. In the first year, the company used the machine for 3,000 hours. (Use these facts to answer questions 3 8) If the company sells the machine at the end of 5 years and receives $11,000, the journal entry to record the sale will include which of the following? Question 8 options: Debit to Accumulated Depreciation for $138,000 Credit to Machine for $138,000 Debit to Loss on Sale for $500 Credit to Gain for $500

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