Question 15 Navajo Corporation traded a used truck ( cost $ 23,600 , accumulated depreciation $ 21,240 ) for a small computer worth $ 4,366 . Navajo also paid $ 1,180 in the transaction . Prepare the journal entry to record the exchange .
Question 16 Mehta Company traded a used welding machine ( cost $ 10,080 , accumulated depreciation $ 3,360 ) for office equipment with an estimated fair value of $ 5,600 . Mehta also paid $ 3,360 cash in the transaction . Prepare the journal entry to record the exchange .
Question 17 Depreciation is normally computed on the basis of the nearest A ). full month and to the nearest dollar . B ). day and to the nearest cent . C ). day and to the nearest dollar . D ). full month and to the nearest cent .
Question 18 Fernandez Corporation purchased a truck at the beginning of 2012 for $ 54,180 . The truck is estimated to have a salvage value of $ 2,580 and a useful life of 206,400 miles . It was driven 29,670 miles in 2012 and 39,990 miles in 2013 . Compute depreciation expense for 2012 and 2013 .
Question 19 Lockhard Company purchased machinery on January 1 , 2012 , for $ 79,200 . The machinery is estimated to have a salvage value of $ 7,920 after a useful life of 8 years . ( a ) Compute 2012 depreciation expense using the double-declining balance method . ( b ) Compute 2012 depreciation expense using the double-declining balance method assuming the machinery was purchased on October 1 , 2012 .
Question 20