Fundamental Accounting Principles Volume 2 17th Edition By Kermit D. Larson test bank

      
       A) $4,250.   
       B) $3,750.
       C) $8,500.
       D) $30,000.
       E) $0.
      






239)       Mohr Company purchases a machine at the beginning of the year at a cost of $27,000. The machine is depreciated using the straight-line method. The machine’s useful life is estimated to be 8 years with a $5,000 salvage value. The book value of the machine at the end of year 2 is:



      
       A) $2,750.   
       B) $5,500.
       C) $16,500.
       D) $21,500.
       E) $22,000.
      






240)       Mohr Company purchases a machine at the beginning of the year at a cost of $44,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 8 years with a $3,000 salvage value. Depreciation expense in year 2 is:



      
       A) $5,500.   
       B) $10,250.
       C) $11,000.
       D) $8,250.
       E) $33,000.
      






241)       Mohr Company purchases a machine at the beginning of the year at a cost of $28,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 5 years with a $2,000 salvage value. The machine’s book value at the end of year 2 is:



      
       A) $15,600. 
       B) $6,800.
       C) $11,200.
       D) $10,080.
       E) $16,800.
      






242)       Mohr Company purchases a machine at the beginning of the year at a cost of $40,000. The machine is depreciated using the units-of-production method. The company estimates it will use the machine for 5 years, during which time it anticipates producing 85,000 units. The machine is estimated to have a $6,000 salvage value. The company produces 10,300 units in year 1 and 7,300 units in year 2. Depreciation expense in year 2 is:



      
       A) $6,000.   
       B) $6,800.
       C) $16,000.
       D) $2,920.
       E) $24,000.
      






243)       Martin Company purchases a machine at the beginning of the year at a cost of $78,000. The machine is depreciated using the straight-line method. The machine’s useful life is estimated to be 5 years with a $4,000 salvage value. Depreciation expense in year 4 is:



      
       A) $15,600. 
       B) $14,800.
       C) $74,000.
       D) $62,400.
       E) $0.
      






244)       Martin Company purchases a machine at the beginning of the year at a cost of $70,000. The machine is depreciated using the straight-line method. The machine’s useful life is estimated to be 4 years with a $4,000 salvage value. The book value of the machine at the end of year 4 is:



      
       A) $16,500. 
       B) $66,000.
       C) $35,000.
       D) $4,000.
       E) $0.