1. A machine has a cost of $17,100, an estimated residual value of $4,050, and an estimated useful life of eight years. The machine is being depreciated on a straight-line basis. At the end of the second year, what amount will be reported for accumulated depreciation? (Do not round your intermediate calculations. Round annual depreciation amount to the nearest dollar amount.)

a. $1,631

b. $3,262

c. $13,838

d. $4,275

2. Schager Company purchased a computer system at a cost of $26,000. The estimated useful life is 7 years, and the estimated residual value is $8,000. Assuming the company will use the double-declining-balance method, what is the depreciation expense for the second year? (Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount.)

a. $6,806

b. $5,306

c. $7,556

d. $7,429

3. Strawberry Fields purchased a tractor at a cost of $54,000 and sold it two years later for $26,000. Strawberry Fields recorded depreciation using the straight-line method, a five-year service life, and an $6,400 residual value. What was the gain or loss on the sale?

a. $29,000

b. $19,040

c. $28,000

d. $8,960