1)

1. Carson Supply bought equipment at a cost of $72,000 on January 2, 2018. It originally had an estimated fife of ten years and a salvage value of $12,000. Carson uses the straight-line depreciation method. On December 31, 2021, Carson decided the useful life likely would end on December 31,2026 (so six more years need to be recorded- depreciation was last recorded on December 31, 2020), with a salvage value of $8,400. The depreciation expense recorded on December 31,2021 should be O $9,600. O $8,000. O $9,000. O $7,600.

3,

Mel Company uses the periodic inventory method and had the following inventory information we Units Unit Cost Total Cost 1/1 Beginning 100 $4 $400 inventory 1/20 Purchase 400 $5 $2,000 7/25 Purchase 200 $7 $1,400 10/20 Purchase 300 $8 $2,400 Total 1,000 $6,200 physical count of inventory on 12/31 revealed there were 400 units on hand (meaning 600 were sold). Assume the company uses the average cont mathod. The ssigned to Ending Inventory is $1,860. ) $2,400. $3.720 $2,480 Mel Company uses the periodic inventory method and had the following inventory information with Units Unit Cost Total Cost 1/1 Beginning 100 inventory $4 $400 1/20 Purchase 400 $5 $2,000 7/25 Purchase 200 $7 $1,400 10/20 Purchase 300 $8 $2,400 Total 1,000 $6,200 Assume a sales price of $12 per unit. Which of the three methods (FIFO, LIFO or average cost) will provide the highest propre FIFO Average cost O LIFO Net income would be the same under each method