1. Equipment with a cost of $165,850.00 has an estimated residual value of $9,461.00 and an estimated life of 3 years or 15,058 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,118 hours?

Select the correct answer.

A.$3.00

B.$32,382.85

C.$50.16

D.$52,129.67

2.

A fixed asset with a cost of $23,712 and accumulated depreciation of $21,341 is traded for a similar asset priced at $62,054 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,483, the cost basis of the new asset is

Select the correct answer.

A.$59,942

B.$62,054

C. $64,425

D.$57,571