Newell Company purchased a machine witha list price of $96,000. They were given a 10%discount by the manufacturer. They paid$600 for shipping and sales tax of $4,500.Newell estimates that the machine will have auseful life of 10 years and a salvage value of$30,000. If Newell uses straight-linedepreciation, annual depreciation will bea.$6,150.b.$6,108.c.$9,150.d.$5,640.A plant asset was purchased on January 1for $75,000 with an estimated salvage valueof $15,000 at the end of its useful life. Thecurrent year's Depreciation Expense is$5,000 calculated on the straight-line basisand the balance of the AccumulatedDepreciation account at the end of the yearis $25,000. The remaining useful life of theplant asset isa.15 years.b.12 years.c.5 years.d.7 years.Jack's Copy Shop bought equipment for$150,000 on January 1, 2016. Jack estimatedthe useful life to be 3 years with no salvagevalue, and the straight-line method ofdepreciation will be used. On January 1,2017, Jack decides that the business will usethe equipment for a total of 4 years. What isthe revised depreciation expense for
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