Short Answer
On January 1, 2014, Doyle Co. purchased a machine for $25,000. Doyle estimated the useful life of the machine to be 10 years and the salvage value to be $5,000. Indicate whether each of the following statements is true or false.
1. The accumulated depreciation at the end of 2015 under the double declining method would be $6,000
2. The depreciation expense for 2014 under the double declining method would be $5,000
3. At the end of 2015, the book value of the machine under the double declining method would be $16,000
4. The depreciation expense for 2014 under the straight-line method would be $2,500
5. The accumulated depreciation at the end of 2015 under the straight-line method would be $5,000
Correct Answer:
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1. False
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