1/

The following information is available on a depreciable asset owned by Mutual Savings Bank:

Purchase date	July 1, Year 1
Purchase price	$101,500
Salvage value	$11,500
Useful life	10 years
Depreciation method	straight-line

The asset's book value is $83,500 on July 1, Year 3. On that date, management determines that the asset's salvage value should be $6,500 rather than the original estimate of $11,500. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:

Multiple Choice

$4,812.50

$2,339.29

$2,609.38

$2,046.88

$2,406.25

2/

Martin Company purchases a machine at the beginning of the year at a cost of $80,000. The machine is depreciated using the double-declining-balance method. The machines useful life is estimated to be 4 years with a $6,600 salvage value. Depreciation expense in year 4 is:

Multiple Choice

$18,600.

$5,000.

$40,000.

$3,400.

$6,800.