1. The year ended on December 31, 2014 with Mirel Company ending up with fixed costs of $110,000. The company incurred direct costs of $720,000 based on a decision made during the year. If a different action was taken, direct costs would've been $570,000. How much was the incremental cost?

2. A printing machine costs $700, and after 5 years, it was sold at a book value of $300. What is the annual rate of depreciation?