53 on january 2 2012 hockey skates inc acquired equipment for 230 000 the estimated 4310595

53) On January 2, 2012, Hockey Skates, Inc., acquired equipment for $230,000. The estimated life of the equipment is 5 years. The estimated residual value is $30,000. What is the book value of the equipment on December 31, 2012, if Hockey Skates uses the double-declining-balance method of depreciation?

A) $92,000

B) $138,000

C) $150,000

D) $184,000

54) On January 2, 2012, Mummy Corporation acquired equipment for $45,000. The estimated life of the equipment is 4 years. The estimated residual value is $5,000. What is the amount of depreciation expense for 2012, if the company uses the double-declining-balance method of depreciation?

A) $10,000

B) $11,250

C) $20,500

D) $22,500

55) On January 2, 2012, Heidi's Pet Boutique purchased a $5,000 television for the dog sitting area. It had an estimated useful life of 5 years and a residual value of $1,000. What is the amount of depreciation expense for 2013, the second year of the asset's life using the double declining-balance method?

A) $800

B) $1,200

C) $1,360

D) $2,000

56) Ben's Burgers paid $300,000 for a piece of equipment. Ben uses straight-line depreciation. Currently the equipment has a balance in the accumulated depreciation account of $100,000. If the asset has no residual value and an estimated life of 6 years, for how many years has the asset been depreciated?

A) 1

B) 2

C) 4

D) 6

57) Income before depreciation and taxes amounts to $167,200. Using straight-line depreciation, the current year's depreciation expense will be $31,200. Using double-declining-balance depreciation, the current year's depreciation expense will be $41,200. Assuming a tax rate of 30%, what is the net cash saved in income taxes by using double-declining-balance depreciation over straight-line depreciation?

A) $3,000

B) $4,000

C) $7,000

D) $11,100