1. On January 1, 2015, Fredrichs Inc. purchased equipment with a cost of 3,060,000, a useful life of 12 years and no salvage value. The company uses straight-ine depreciation. At December 31, 2015, the company determines that impairment indicators are present. The fair value less cost to sell the asset is estimated to be 2,600,000. The asset's value-in-use is estimated to be 2,365,000. There is no change in the asset's useful life or salvage value The 2016 (second year) Income statement will report depreciation expense for the equipment of (2 Points) 216,667 236.364 255.000 260,000 ABCLLC manufactures and sells paper-envelopes. The stock of envelopes was included in the closing inventory as of December 31, 2005, at a cost of $50 each per pack. During the final audit, the auditors noted that the subsequent sale price for the inventory at January 15, 2006, was $40 each per pack. Furthermore, inquiry reveals that during the physical stock take, a water leakage has created damages to the paper and the glue. Accordingly, in the following week, ABC LLC spent a total of $15 per pack for repairing and reapplying glue to the envelopes. The net realizable value and inventory write-down (loss) amount to: A) $40 and $10 respectively. B) $45 and $10 respectively. C) $25 and $25 respectively. D) $35 and $25 respectively. E) $30 and $15 respectively