1. Jay Corp. bought a machine for $15,000 on September 3. The machine is expected to produce 10,000 units. The machine has a residual value of $5,000. Assuming the machine produces 400 units during year 1, what should the depreciation expense be?

2. Bob bought on January 1, a new delivery truck for his drug store for $30,000. The residual value is $3,000 with an expected life of 5 years. Using double declining balance, calculate the remaining book value at the end of year 2.

3. By sum-of-the-years'-digits, calculate depreciation expense in year 7 from the following: Truck: $60,000 Residual value: $10,000 Estimated life: 10 years