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 , accum ulated depreciation $ 3,360 ) for office equipment with an estimated fai r value of $ 5,600 . Mehta also paid $ 3,360 cash in the transaction . Pre pare 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 20 13 . 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 aft er a useful life of 8 years . ( a ) Compute 2012 depreciation expense using the doubledeclining balance method . ( b ) Compute 2012 depreciation expense using the doubledeclining balance method assuming the machinery was purchased on October 1 , 2012 . Question 20 Jurassic Company owns machinery that cost $ 1,145,700 and has accu mulated depreciation of $ 458,280 . The expected future net cash flows from the use of the asset are expected to be $ 636,500 . The fair value of the equipment is $ 509,200 . Prepare the journal entry , if any , to reco rd the impairment loss . Question 21 Everly Corporation acquires a coal mine at a cost of $ 501,600 . Intangi ble development costs total $ 125,400 . After extraction has occurred ,