1.

Computer equipment that was acquired at the beginning of the year at a cost of $59,615 has an estimated residual value of $3,205 and an estimated useful life of 7 years. Determine the second-year depreciation using the straight-line method.

$8,974.29

$8,058.57

$16,117.14

$8,516.43

2.

Three identical units of merchandise were purchased during March, as shown:

		Steele Plate	Units	Cost
Mar. 3		Purchase	1	$830
10		Purchase	1	840
19		Purchase	1	880
		Total	3	$2,550

Assume that one unit is sold on March 23 for $1,125. Determine the gross profit for March and ending inventory on March 31 using (a) FIFO, (b) LIFO, and (c) average cost methods.

	Gross Profit	Ending Inventory
a. First-in, first-out (FIFO)	$	$
b. Last-in, first-out (LIFO)	$	$
c. Average cost	$	$