26. Eads Incorporated acquired a new computer on January 1, 2008. The total capi

Question

26. Eads Incorporated acquired a new computer on January 1, 2008. The total capitalized cost of the computer equipment was $315,000. Eads estimated that the equipment would be used for 8 years before being sold for an estimated $43,000 salvage. Assuming the use of straight-line depreciation, the total depreciation expense for the year ended December 31, 2008 was:
a. $25,200
b. $34,000
c. $39,375
d. $15,750

      e. none of the above

27. Alpharetta Manufacturing acquired a new production machine on January 3, 2006. The total cost of the machine was $69,300.Alpharetta estimated that the machinery would be used for 53,900 hours before being sold for an estimated $1,925 salvage. Alpharetta uses the units-of-production method of depreciation. Assuming the machine was used for 7,900 hours during 2006, 9,150 hours during 2007 and 17,400 hours during 2008, the carrying value of the new machine  on January 2, 2009 would be:
a. $43,062.50
b. $26,237.50
c. $44,292.85
d. $25,007.00
e. $1,925.00

28. During 2009 Gator Leasing generated cash from leasing, it

Explanation / Answer

26=d

27=a

28=c

29=e

30=b

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