Question 1. Vince's Woodworking purchased a wood lathe on January 1, 20X3, at a cost of $45,000. At the time of purchase, the lathe was expected to have a five-year economic life and a residual value of $3,000. Vince's uses straight-line depreciation. At December 31, 20X5, before recording depreciation expense for 20X5, Vince estimated the lathe to have a remaining life of three years with no residual value. For the year ended December 31, 20X5, Vince would report depreciation expense of:
Options are:
- $9,400
- $9,000
- $14,100
- $6,750
Question 2: Material restructuring costs are reported as an element of income from continuing operations
Question 3: Gains, but not losses, from discontinued operations may be separately reported in an income statement.