1. On January 1, 2018, Anderson Inc. acquired a machine for $1,000,000. The estimated useful life of the asset is 5 years. The residual value at the end of 5 years is estimated to be $50,000. If the company uses the straight-line method of depreciation, what is the book value of the machine at the end of 2019? (A) $570,000 (B) $600,000 (C) $620,000 (D) $550,000 2. Santos Company is a price-taker and uses target pricing. Refer to the following information: $18 Production volume per year: 600,000 units Market price per unit: $30 Desired operating income: 15% of total assets Total assets: $13,900,000 Variable cost per unit: Fixed cost per year: $5,600,000 With the current cost structure, Santos cannot achieve its profit goals. It will have to reduce either the fixed costs or the variable costs. Assuming that variable costs cannot be reduced, how much will be the target fixed costs per year? (A) $5,115,000 (B) $5,600,000 (C) $10,315,000 (D) $5,200,000 3. The entry to write off an account receivable under the allowance method will: (A) reduce net income. (B) have no effect on net income. (C) increase total assets. (D) increase net income