1- On January 1, 2016, Wheeler, Inc. purchased some equipment for $3,900. The equipment had an estimated life of five years and an expected residual value of $200. On July 1, 2018, the equipment was sold for $1,000. Wheeler uses straight-line depreciation. What is the amount of depreciation expense that needs to be brought up to date prior to the sale?

a

$370

b

$480

c

$740

d

$200

2- An example of an event where the book value of property, plant, and equipment may not be recoverable would include ________.

a	a significant change in the way the asset is used
b	a current period operating loss
c	a significant decrease in the fair value of the asset
d	All of these choices are examples where the book value may not be recoverable