1. Recognized depreciation expense on the equipment, van, and building. The equipment has a 5-year life and a $2,000 salvage value. The van has a 4-year life and a $6,000 salvage value. The building has a 40-year life and a $10,000 salvage value. The company uses double-declining-balance for the van and straight-line for the equipment and the building. The equipment and van were purchased in Year 8 and a full year of depreciation was taken for both in Year 8.

Equipment $9,000

Van $27,000

Building $125,000