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On January 1,2015,li Company Purchased an Asset That Cost $80,000.the

Question 71
Multiple Choice

On January 1,2015,Li Company purchased an asset that cost $80,000.The asset had an expected useful life of five years and an estimated salvage value of $16,000.Li uses the straight-line method for the recognition of depreciation expense.At the beginning of the fourth year of usage,the company revised its estimated salvage value to $8,000.Based on this information,the amount of depreciation expense to be recognized at the end of 2018 is: A)$12,800. B)$16,800. C)$33,600. D)$20,800.

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At the beginning of 2018,Furst revised the expected life to eight years.The annual amount of depreciation expense for each of the remaining years would be: A)$6,240. B)$4,400. C)$7,040. D)$3,900.
Q 73
If the original expected life remained the same (i.e. ,5-years),but at the beginning of 2018,the salvage value was revised to $8,000,the annual depreciation expense for each of the remaining years would be: A)$5,440. B)$27,200. C)$13,600. D)$14,800.
Q 74
On January 1,2016 Ballard Company spent $12,000 on an asset to improve its quality.The asset had been purchased on January 1,2015 for $52,000.The asset had a $4,000 salvage value and a 6-year life.Ballard uses straight-line depreciation.What would be the book value of the asset on January 1,2019? A)$24,800. B)$20,800. C)$10,400. D)$24,000.
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