My answers are in ()
1.My question is if the 150% declining balance method is being used and an asset has a useful life of 20 years what is the depreciation rate?

(D)
a. 7.5% b. 10% c. 15% d. Some other amount

2.Machinery is purchased on May 15, 2007 for $60,000 with a $5,000 salvage value and a five year life. The half year convention is followed. What method of depreciation will give the highest amount of depreciation expense in year 2?

(A)
a. Straight line b. Double declining balance c. 150% declining balance d. Amount cannot be determined


3.An asset which costs $9,400 and has accumulated depreciation of $3,000 is sold for $5,800. What amount of gain or loss will be recognized when the asset is sold?

(C)
a. A gain of $600 b. A loss of $600 c. A loss of $3,600 d. A gain of $3,600



4.With respect to depreciation policies, the principle of consistency means:

(C)
a. A company should use the same depreciation methods in its financial statements that it uses in its income tax returns.
b. A company should use the same depreciation methods as other companies in the same industry.
c. A company should use the same depreciation method from year to year for a given plant asset.
d. A company should use the same depreciation method in computing depreciation expense on all its assets.

thank you

The only correct one is (4), which is telling me you're having some confusions over how depreciation is done. I'm not going to just go through and give the correct answers. If you would provide some info on how you got to your answers, it would be easier to correct your thinking, and you'll learn more from it that way.

One thing I will throw out is how to get declining balance rates:
100/useful life x percent of the method.

That is, 150% declining balance is 100/useful life x 150%.
Double declining balance means 200%, so 100/useful life x 200%.

Since you did this incorrectly on (1), that may be why you have (2) incorrect also, I don't know. I'd love to know where you got your calculation for (3).