Acquisition and Depreciation At the beginning of 2009, Beef’s Steak House constructed a new walk-in freezer that had a useful life of 10 years. At the end of 10 years, the motor could be salvaged for $3,500. In addition to construction costs that totaled $15,000, the following costs were incurred:

1. What is the cost of the walk-in freezer to Beef’s Steak House?
2. Compute the amount of depreciation to be taken in the first year assuming Beef’s Steak House uses the

a. Double-declining-balance method.

b. Sum-of-the-years’-digits method.

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Sales taxes on components Delivery costs Installation of motor Painting of both interior and exterior of freezer $1,100 700 300 200