PROBLEM 6: MULTIPLE CHOICE: COMPUTATIONAL

1. D

2. A (150,000 x 2/4) = 75,000; (13,500 x 2/4) = 6,750

3. D (360,000 – 50,000 – 5,000) ÷ 8 = 38,125

4. C (135,000 – 13,500) = 121,500 net historical cost;

121,500 x 80%* x 20% = 19,440

* 100% - 20% double declining balance rate = 80%