Question 3 Farthing Company acquired a 40000 machine on Janu

Question 3

Farthing Company acquired a $40,000 machine on January 1, 20X4. The machine is estimated to have a useful life of 5 years, and a residual value of $4,000. For unit depreciation purposes, the machine is expected to produce 500,000 units.

If Farthing Company uses straight-line depreciation, what is the depreciation expense in 20X5?

$ 7,200

$ 8,000

$ 8,800

$12,500

Question 5

Farthing Company acquired a $40,000 machine on January 1, 20X4. The machine is estimated to have a useful life of 5 years, and a residual value of $4,000. For unit depreciation purposes, the machine is expected to produce 500,000 units.

What is the depreciable value of the machine acquired by Farthing Company (that will be used for depreciation calculation)?

A.$ 4,000

B.$36,000

C.$40,000

D. $8,000

Question7

Farthing Company acquired a $40,000 machine on January 1, 20X4. The machine is estimated to have a useful life of 5 years, and a residual value of $4,000. For unit depreciation purposes, the machine is expected to produce 500,000 units.
If Farthing Company uses double-declining-balance depreciation (based on the original cost and ignoring the residual value), what is the depreciation expense in 20X4?

A. $16,000

B. $17,600

C. $25,000

D. $27,776

Solution

the solutions to quations are

3)

A. 7200

5)

D. 8000

6)

A. 16000