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Use the following information to answer Questions 46 50: on April 1, 2016, a company...

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Accounting

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Use the following information to answer Questions 46 50: on April 1, 2016, a company that uses a calendar year purchases equipment with an acquisition cost of $85,000 that it estimates will produce 800,000 units over its 8-year life and have a residual value of $5,000. You are depreciating the asset for book purposes. 46. If the company uses the straight-line method, 2016 depreciation will be .... a. $10, 625 b. $10,000 c. $7, 969 d. $7, 500 47. If the company uses units of production depreciation and the equipment produces 75,000 units in 2016 and 150,000 units in 2017, then at the end of the second year, total accumulated depreciation will be .... a. $80,000 b. $22, 500 c. $15,000 d. $7, 500 48. If the company uses double-declining balance depreciation, its 2016 depreciation (rounded) will be .... a. $15, 938 b. $13, 333 c. $10,000 d. $7, 500 49. Under double-declining balance depreciation, the equipment's book value (rounded) at the end of 2017 will be ..... a. $69, 063 b. $67, 500 c. $51, 797 d. $47, 813 50. If the company uses the sum-of-the-years' digits method, the 2017 depreciation will be (rounded) .... a. $17, 778 b. $15, 556 c. $16, 111 d. $13, 333

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