64) Mouse Corporation acquired a building on January 1, 2010, for $500,000. The building had an estimated useful life of 20 years and an estimated salvage value of $25,000. On January 1, 2013, Mouse Corporation determined that the building could only be used for another 10 years and there would be no salvage value. Compute depreciation expense for the year ending December 31, 2013, if Mouse Corporation uses straight-line depreciation.
A) $16,667
B) $40,000
C) $42,875
D) $50,000
65) Jackson Corporation acquired equipment on January 1, 2010, for $320,000. The equipment had an estimated useful life of 10 years and an estimated salvage value of $25,000. On January 1, 2013, Jackson Corporation revised the total useful life of the equipment to 6 years and the estimated salvage value to be $20,000. Using the straight-line method of depreciation, what is the book value as of December 31, 2013?
A) $146,000
B) $154,333
C) $159,000
D) $161,000
66) The Fall River Corpor7ation bought a plant asset on January 1, 2010, at a cost of $45,000. Estimated residual value is $5,000 and the estimated useful life is 8 years. The company uses straight-line depreciation. On January 1, 2013, Fall River's management revises the total estimated life to be 10 years, with estimated residual value of $2,000. The balance in accumulated depreciation on December 31, 2013, is:
A) $10,000.
B) $16,358.
C) $19,000.
D) $21,429.
67) Wacky Motors purchased a machine that will help diagnose problems with engines. The machine cost $300,000 on January 3, 2012 and had a residual value of $20,000, with a useful life of 7 years. Calculate the depreciation expense and book value as of December 31, 2012 under both the straight-line and DDB methods.
