1/ Peavey Enterprises purchased a depreciable asset for $22,000 on April 1, Year
ID: 2585286 • Letter: 1
Question
1/ Peavey Enterprises purchased a depreciable asset for $22,000 on April 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 $2,000, Peavey Enterprises should recognize depreciation expense in Year 2 in the amount of:
Multiple Choice
$5,500.00
$20,000.00
$5,000.00
$19,166.67
$4,166.67
2/
Multiple Choice
$5,500.00
$20,000.00
$5,000.00
$19,166.67
$4,166.67
2/ Ngu owns equipment that cost $97,700 with accumulated depreciation of $66,800. Ngu asks $36,050 for the equipment but sells the equipment for $33,700. Compute the amount of gain or loss on the sale.
Multiple Choice
$5,150 loss.
$5,150 gain.
$2,350 gain.
$2,800 gain.
$2,800 loss.
Explanation / Answer
1.
2.
Cost of the asset $ 22,000 Less: Salvage value $ (2,000) Depreciable value $ 20,000 Life of the asset 4 Years Depreciation per year ($20,000/4) $ 5,000Related Questions
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