1/ Cutter Enterprises purchased equipment for $60,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $5,400. Using the double-declining balance method, depreciation for 2018 and the book value on December 31, 2018, would be:

$21,840 and $38,160 respectively.

$24,000 and $36,000 respectively.

$24,000 and $30,600 respectively.

$21,840 and $32,760 respectively.

2/

Broadway Ltd. purchased equipment on January 1, 2016, for $980,000, estimating a 8-year useful life and no residual value. In 2016 and 2017, Broadway depreciated the asset using the straight-line method. In 2018, Broadway changed to sum-of-years'-digits depreciation for this equipment. What depreciation would Broadway record for the year 2018 on this equipment?

3/ Comet Cleaning Co. reported the following on its December 31, 2018, balance sheet: Equipment (at cost) $3,300,000 In a disclosure note, Comet indicates that it uses straight-line depreciation over six years and estimates salvage value as 10% of cost. Comet's equipment averages 4.5 years at December 31, 2018. Required: What is the book value of Comet's equipment at December 31, 2018?