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    Accounting: Depreciation.

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    Moped, Inc. purchased machinery at a cost of $22,000 on January 1, 2011. The expected useful life is 5 years and the asset is expected to have salvage value of $2,000. Moped depreciates its assets via the double-declining balance method.

    What is the accumulated depreciation for this asset on December 31, 2012?
    A. $4,400
    B. $5,280
    C. $8,800
    D. $14,080

    What is the firm's gain or loss if the machinery is sold for $11,000 on December 31, 2012?
    A. Gain of $4,000
    B. Gain of $3,080
    C. Loss of $600
    D. Loss of $4,000

    Which of the following could be a correct journal entry to record the disposition of equipment? See attachment
    A. Option A
    B. Option B
    C. Option C
    D. Option D

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    Solution Summary

    This solution deals with calculating the depreciation for an asset with double declining method.