1. An asset was purchased for $65,000 and originally estimated to have a useful life of 10 years with a residual value of $3,600. After two years of straight-line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $1,440.

a) Determine the amount of the annual depreciation for the first two years. $

b) Determine the book value at the end of Year 2. $

c) Determine the depreciation expense for each of the remaining years after revision. $

2. Financial statement data for the years ended December 31 for Parker Corporation are as follows:

		Current Year	Prior Year
Net Sales		$2,595,600	$2,409,498
	Fixed assets (net):
	Beginning of the year	$901,070	$820,000
	End of the year	829,330	901,070

a. Determine the fixed asset turnover for the current and prior years. Round your answers to one decimal place.

Current Year:
Prior Year:

b. Does the change in fixed asset turnover from the prior year to the current year indicate a favorable or unfavorable trend?

3.