1. Machinery was purchased on January 1 for $52,000.00. The machinery has an estimated life of 7 years and an estimated salvage value of $9,000. Double-declining balance depreciation for the second year would be

Select the correct answer.

a. $10,612.24

b. $9,612.24

c. $11,612.24

d. $10,112.24

2. An asset was purchased for $147,000.00 on January 1, Year 1 and originally estimated to have a useful life of 10 years with a residual value of $12,000.00. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $1,800.00. Calculate the third-year depreciation expense using the revised amounts and straight line method.

Select the correct answer.

a. $30,050.00

b. $30,550.00

c. $28,550.00

d. $29,550.00