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. S112,700 d. S138,000 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. S52,900 d. $42,320 e. None of the above 3. Nordic, Inc. has depreciable equipment with the following information: Original cost: S333,500 $31,900 $127,600 10 vears $14,500 reciation for 2020 Accumulated depreciation balance at end of 2019 Estimated useful life Estimated salvage value Nordic sells the equipment at the end of 2020 for $190,000 cash. The effect selling the equipment will have on 2020 pre-tax income is: a. Selling the equipment will reduce 2020 pre-tax income by $15,000 b. Selling the equipment will increase 2020 pre-tax income by $1,500 c. Selling the equipment will reduce 2020 pretax income $145,000 d. Selling the equipment will increase 2020 pretax income by S16,000 e. Selling the equipment will reduce 2020 pretax income by $15,900 4. Johanson Controls, Inc. has three warehouse and distribution centers it wants to sell. Johanson used straight-line depreciation for the three warehouses and, based on current market value estimates, the sale of the three warehouses when sold before the ends of their useful life estimates, will produce a financial reporting loss. If Johanson had used double-declining balance depreciation instead of straight-line, the financial reporting loss on the sale of the warehouses would have been: a. Larger than with straight-line depreciation. b. The same as with straight-line depreciation. c. Indeterminate without knowing the cost, salvage value, and useful life estimates Johanson used. d. Smaller than with straight-line depreciation