Listed below are several long-lived assets owned by X Corp. The company uses straight-line depreciation. Assume in all cases that the asset's first and last years are full years, and that all assumptions and estimates used to derive depreciation remain unchanged throughout the assets' useful lives. \[\begin{array} { | l | r | c | r | } \hline\text {}&\text {}&&\text {Estimated residual}\\ \text { Item } & { \text { Cost } } & \text { Estimated useful life}& { \text { value } } \\ \hline\text { Lathe } & \$ 4,500,000 & 20 \text { years }&150,000 \\ \hline \text { Luilding } & 35,000,000 & 10 \text { years } &800,000 \\ \hline \text { Earth-moving truck } & 450,000 & 10 \text { years } & 15,000 \\ \hline \text { Electric turbine } & 6,000,000 & 6 \text { years } & 420,000 \\ \hline \text { Stamping machine } & 25,000,000 & 6 \text { years } & 4,000,000\\ \hline \end{array}\] Required: For each asset, calculate the depreciation expense for the last year of the assets' useful lives. Show your calculations.

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Fantasy Limited purchased equipment on January 1, 2019 for $275,000. The asset's useful life was estimated at 5 years or 10,000 units of output, with no residual value. The company has a December 31 year end. Additional Information \[\begin{array} {| l | l| } \hline \text { Year } & \text { Units of Output } \\ \hline 2019 & 2,100 \\ \hline 2020 & 2,000 \\ \hline 2021 & 1,700 \\ \hline 022 & 2,300 \\ \hline 2023 & 1,900 \\ \hline \end{array}\] Assuming the company uses the units-of-production depreciation method, what is the depreciation expense for 2019?

A) $25.00 B) $27.50 C) $52,500 D) $57,750 A) $25.00 B) $27.50 C) $52,500 D) $57,750

AccountingPro purchased equipment on January 1, 2019 for $275,000. The asset's useful life was estimated at 5 years or 10,000 units of output, with no residual value. The company has a December 31 year end. Additional Information \[\begin{array} {| l | l |} \hline \text { Year } & \text { Units of Output } \\ \hline 2019 & 2,100 \\ \hline 2020 & 2,000 \\ \hline 2021 & 1,700 \\ \hline 022 & 2,300 \\ \hline 2023 & 1,900 \\ \hline \end{array}\] Assuming the company uses the units-of-production depreciation method, what is the depreciation rate per unit for 2023?

A) $25.00 B) $27.50 C) $47,500 D) $52,250 A) $25.00 B) $27.50 C) $47,500 D) $52,250

The following entry was recorded by Woodrow Inc.: \[\begin{array} { | l | r | r | } \hline \text { Cash } & 57,000 & \\ \hline \text { Accumulated depreciation } & \mathbf { 3 3 , 0 0 0 } & \\ \hline \text { Loss on disposal of property, plant, and } & & \\ \text { equipment (PPE) } & \mathbf { 1 0 , 0 0 0 } & \\ \hline \text { PPE } & & \mathbf { 1 0 0 , 0 0 0 } \\ \hline \end{array}\] What is the effect on Woodrow's financial statements?

A) Current assets increased by $67,000. B) Net assets increased by $57,000. C) The carrying value of property, plant, and equipment (PP E) decreased by $67,000. D) Retained earnings decreased by $57,000. A) Current assets increased by $67,000. B) Net assets increased by $57,000. C) The carrying value of property, plant, and equipment (PP E) decreased by $67,000. D) Retained earnings decreased by $57,000.

The following entry was recorded by Alex Corp.: \[\begin{array} { | l | r | r | } \hline \text { Cash } & 80,000 & \\ \hline \text { Accumulated depreciation } & 50,000 & \\ \hline \text { Loss on disposal of property, plant, and } & 20,000 & \\ \text { equipment (PPE) } & & \\ \hline \text { PPE } & & 150,000 \\ \hline \end{array}\] What is the effect of this entry on the financial statements?

A) Current assets decreased by $80,000. B) Net assets decreased by $20,000. C) Net PPE decreased by $130,000. D) Income decreased by $30,000. A) Current assets decreased by $80,000. B) Net assets decreased by $20,000. C) Net PPE decreased by $130,000. D) Income decreased by $30,000.