An asset having a six-year useful life and a salvage value of $3,000 was acquire

Question

An asset having a six-year useful life and a salvage value of $3,000 was acquired for $21,000 cash on January 1. The company estimates the asset will produce 60,000 units over its useful life. During the year the asset was used to produce 14,020 units what will be the depreciation expense for year 1 of this asset? Using straight-line depreciation, a. $3,000 b. $4,907 .$4,206 O d. $3,500 QUESTION6 A company had a broken printer which they deemed was not worth fixing and thus discarded it. The original cost of the printer was $7,500 and the accumulated depreciation at the time of disposal was 56,000. Which of the following would be included in the correct journal entry to record the disposal of the printer? a. A credit to the Loss on Disposal account to:11,500 b. A debit to the Loss on Disposal account for $1,500 OC A credit to the Accumulated Depreciation account of $6500 d. A credit to the Gain on Disposal account for $1,500 A debit to the Equipment account for $7,000

Explanation / Answer

Answer to Question 5
Depriciation on SLM Basis
Formula : Cost - Salvage value
Life

= ($21000 - $3000)/6

= $ 3000
So Option A Is the right answer

Answer to Question 6

Entry for disposal of asset Debit Credit
Debit Loss on disposal $1500
Debit Accumulated Dep $ 6000
Credit Assets $7000

So option B Is the right answer

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