On December 31, Briar Co. disposed of a piece of equipment that cost $6,000 with accumulated depreciation of $4,500.

Ironworks Co. sells a machine that cost $5,000 with a current book value of $1,500 for $2,000 cash.
Ironworks will record a debit to which account and for how much?

Accumulated Depreciation - Equipment for $:ll,500
Equipment for $5,000
Equipment for $3,500
Accumulated Depreciation - Equipment for $3,500 


Prive Co. purchases a machine that cost $15,000. Prive estimates a 5-year life with no salvage value.
The first three years of depreciation expense are $6,000; $3,600; and $2,160, respectively. Based

on this information, Prive is using the ___ depreciation method.

straight-line
declining-balance
units-of-production


On December 31, Briar Co. disposed of a piece of equipment that cost $6,000 with accumulated
depreciation of $4,500. The entry to record this disposal would include a debit to which account and
for how much?

Depreciation Expense - Equipment for $1,500
Loss on Disposal of Equipment for $1,500
Accumulated Depreciation for $6,000
Equipment for $6,000


The method of depreciation that charges a varying amount to depreciation expense for each period of
an asset's useful life depending on Its usage is called the method.

straight-line
MACRS
units-of-production
declining-balance