Determine depreciation expense for year one

Question

1. Determine depreciation expense for year one using the straight-line method.

• $300
• $3900
• $600
• $675

 

2. Determine depreciation expense for year one using the double-declining-balance method.

• $3900.00
• $1462.50
• $2437.50
• $1500.00

3. Determine depreciation expense for two using the straight-line method.

• $300
• $3900
• $600
• $900

4. Determine depreciation expense for year two using the double-declining-balance method.

• $1218.75
• $3900
• $2437.50
• $1500.00

5. If the equipment is sold at the end of year one for $3225, what will be the gain or loss on the sale, assuming that the company used the straight line method of depreciation.

• $1000
• $100
• $2225
• $0