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Ace company purchased a machine valued at $330,000 on August 1. The equipment has an estimated...

Ace company purchased a machine valued at $330,000 on August 1. The equipment has an estimated useful life of 5 years or 3.5 million units. The equipment is estimated to have a salvage value of $9,200. Assuming the double declining balance method of depreciation, what is the amount of depreciation expense that needs to be recorded at the end of the second year if 810,000 units were produced?

$55,000

$275,000

$108,500

$132,000

$110,000

Perry Trucking has its local automotive service company change the oil on its trucks. They bill is $1,050, which Perry pays in cash. How would the company record this transaction?

Debit Trucks for $1,050 and credit Cash for $1,050.

Debit Repairs Expense for $1,050 and credit Cash for $1,050.

Debit Trucks for $1,050 and credit Accounts Payable for $1,050.

Debit Repairs Expense for $1,050 and credit Accounts Payable for $1,050.

Debit Depreciation Expense for $1,050 and credit Cash for $1,050.

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