1.

On January 1, Year 1, Jing Company purchased office equipment that cost $18,300 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2800. The equipment had a five-year useful life and a $7140 expected salvage value. Assuming the company uses the double-declining-balance depreciation method, what are the amounts of depreciation expense and accumulated depreciation, respectively, that would be reported in the financial statements prepared as of December 31, Year 3?

Group of answer choices

$4147 and $22,947

$456 and $7140

$6912 and $18,432

$0 and $18,800

2.

On January 1, Year 1, Jing Company purchased office equipment that cost $18,200 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2700. The equipment had a five-year useful life and a $6860 expected salvage value. Assume that Jing Company earned $28,600 cash revenue and incurred $18,000 in cash expenses in Year 3. The company uses the straight-line method. The office equipment was sold on December 31, Year 3 for $10,300. What is the company's net income (loss) for Year 3?

Group of answer choices

$2780

$5680

$6720

($2980)