An asset cost 33,000 . It has an expected useful life of 5 years ...

[Medesa]

An asset cost 33,000 . It has an expected useful life of 5 years and an expected salvage value of 3,000 . Depreciation expense for the first year of the asset's life using the straight-line method is
 a. 6,000.
   b. 6,600.
   c. 10,000.
   d. 13,200.

Question 2

A not-for-profit entity receives equipment having a fair value of 50,000 as a gift. How should the gift be reported in the entity's financial statements?
 
  a. as an asset and as an increase in permanently restricted net assets
  b. as an asset and as an increase in unrestricted net assets
  c. as a footnote only, because gifts of equipment are not be reported on the face of financial statements
  d. as an asset and as an increase in temporarily restricted net assets

[peter]

Answer to Question 1

a

Answer to Question 2

b