1. Doblin Corp. purchased equipment on January 1, 2016 for $264,500. Doblin management estimated the useful life of the machine to be 10 years with a salvage value of $11,500. Under the straight-line method of depreciation, the book value of the machine at December 31, 2020 will be (round to the nearest dollar) :

a.

$23,500

b. $11,500

c. $112,700

d. $138,000

e. None of the above.

2. Refer to the Doblin Corp question above. Double declining balance method depreciation expense for year 2 (2017) would be:

a.

$42,780

b. $96,220

c. $52,900

d. $42,320

e. None of the above