On January 3, ATA Company purchases a copy machine for $11,500. The machine is expected to last five years and have a salvage value of $1,500

The factors necessary to compute depreciation include (cost selling price/market value)cost, salvage
value and useful life.



___ value, also called residual value or scrap value, is an estimate of the asset's value at the end
of its benefit period.
Leftover
Useful
Obsolescence
Salvage


On January 3, ATA Company purchases a copy machine for $11,500. The machine is expected to last
five years and have a salvage value of $1,500. Compute depreciation expense for the first year,

assuming the company uses the straight-line method.

$2,300
 $2,000
$2,600

The useful life (also called service life) is the length of time the asset is productively used in a company's

operations. 

Plant assets are assets used in a company's operations that have a useful life of more than one

accounting period. 

A delivery van that cost $45,000 with accumulated depreciation of $15,000 Is sold for $20,000. How

much gain or loss will be recognized on this sale? 

$10,000 gain

$20,000 loss

$15,000 gain

$5,000 loss

$20,000 gain

$10,000 loss