16) Ferguson Company purchased a depreciable asset for $100,000. The estimated salvage value is $10,000, and the estimat

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16 Ferguson Company Purchased A Depreciable Asset For 100 000 The Estimated Salvage Value Is 10 000 And The Estimat 1 (52.36 KiB) Viewed 48 times

16) Ferguson Company purchased a depreciable asset for $100,000. The estimated salvage value is $10,000, and the estimated useful life is 10 years. The straight-line method will be used for depreciation. What is the depreciation base of this asset? a. $9,000 b. $10,000 c. $90,000. d. $100,000 Explain: 17) Hamilton Company purchased a depreciable asset for $200,000. The estimated salvage value is $20,000, and the estimated useful life is 10 years. The straight-line method will be used for depreciation. What is the depreciation base of this asset? a. $18,000 b. $20,000 c. $180,000 d. $200,000 Explain: ACT-212 Second Semester 1439-1440 18) Solar Products purchased a computer for $13,000 at the beginning of 2010. The company intends to depreciate it over 4 years using the double-declining balance method. Salvage value is $1,000. Depreciation for 2010 is a. $6,500 b. $3,250 c. $4,875 d. $3,000 Explain: 19) Gardner Corporation purchased a truck at the beginning of 2010 for $75,000. The truck is estimated to have a salvage value of $3,000 and a useful life of 120,000 miles. It was driven 18,000 miles in 2010 and 32,000 miles in 2011. What is the depreciation expense for 2010? a. $11,250 b. $10,800 c. $18,000 d. $30,000 Explain :