Questions -
1) Lomax Enterprises purchased a depreciable asset for $27,500 on March 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $3,100, Lomax Enterprises should recognize depreciation expense in Year 2 in the amount of:
$23,383.33
$6,100.00
$24,400.00
$5,083.33
$6,875.00
2) On November 1, Carter Company signed a 120-day, 12% note payable, with a face value of $10,800. What is the maturity value of the note on March 1? (Use 360 days a year.)
$11,232
$10,944
$10,800
$11,088
$11,016