On January 1, Year 1, Warren Co. purchased a machine for $120,000. Warren estimated the useful life of the machine to be 10 years and the salvage value to be $20,000. Indicate whether each of the following statements is true or false.
_____ a) Depreciation expense for Year 1 under the straight-line method would be $12,000.
_____ b) Depreciation expense for Year 1 under the double declining method would be $24,000.
_____ c) The accumulated depreciation at the end of Year 2 under the straight-line method would be $20,000.
_____ d) The accumulated depreciation at the end of Year 2 under the double declining method would be $48,000.
_____ e) The book value of the machine under both the double declining method and the straight-line method at the end of 10 years would be $20,000.

Question

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The Answer of On January 1, Year 1, Warren Co. purchased a machine for $120,000. Warren estimated the useful life of the machine to be 10 years and the salvage value to be $20,000. Indicate whether each of the following statements is true or false.
_____ a) Depreciation expense for Year 1 under the straight-line method would be $12,000.
_____ b) Depreciation expense for Year 1 under the double declining method would be $24,000.
_____ c) The accumulated depreciation at the end of Year 2 under the straight-line method would be $20,000.
_____ d) The accumulated depreciation at the end of Year 2 under the double declining method would be $48,000.
_____ e) The book value of the machine under both the double declining method and the straight-line method at the end of 10 years would be $20,000.