1. A machine with a cost of $51,600 has an estimated residual value of $3,119 and an estimated life of 5 years or 16,359 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method?

a.$10,320.00

b.$12,384.00

c.$20,640.00

d.$19,392.40

2. If a fixed asset, such as a computer, were purchased on January 1st for $1,919 with an estimated life of 4 years and a salvage or residual value of $137, the journal entry for monthly expense under straight-line depreciation is

a.

Accumulated Depreciation		445.50
Depreciation Expense			445.50

b.

Accumulated Depreciation		37.13
Depreciation Expense			37.13

c.

Depreciation Expense		37.13
Accumulated Depreciation			37.13

d.

Depreciation Expense		445.50
Accumulated Depreciation			445.50