2. A plant asset purchased for $330,000 at the beginning of
the year has an estimated life of 5 years and a residual value of $30,000.
Depreciation for the third year, determined by the sum-of-the-years’-digits
method is:

3. A plant asset with a cost of $320,000 and accumulated
depreciation of $90,000, is given together with cash of $120,000 in exchange
for a similar asset worth $330,000. The disposal results in a gain or loss
(select one) of:

4. A plant asset with a cost of $270,000, estimated life of
5 years, and residual value of $45,000, is depreciated by the straight-line
method. This asset is sold for $190,000 at the end of the second year of use.
The disposal results in a gain or loss (select one) of:

5. Barkley Corp. obtained a trade name in January 2013,
incurring legal costs of $36,000. The company amortizes the trade name over 8
years. Barkley successfully defended its trade name in January 2014, incurring
$9,800 in legal fees. At the beginning of 2015, based on new marketing
research, Barkley determines that the fair value of the trade name is $30,000.
Estimated total future cash flows from the trade name are $32,000 on January 4,
2015.