1. On Jan. 1, 2014, a company placed into service a machine that had an acquisition cost of $60,000, a salvage value of $6,000, and an estimated useful life of 5 years. On Jan. 1, 2016, the company revised the estimated salvage value of the machine to $9,000. How much annual depreciation expense should be recognized for 2016, using straight-line depreciation?

A company sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2017: Historical Unit Cost Coffee Bean Coffea arabica Coffea robusta Units 13,700 bags 5,600 bags $5.50 3.30 Market Value $5.47 4.40 After applying the lower-of-cost-or-market (LCM) rule, what value should be reported for ending inventory on the Dec. 31, 2017 balance sheet