1. Which of the following depreciation methods does not use the estimated salvage value directly in its calculation? (a) Sum-of-the-years'-digits. (b) Straight line. (c) Declining balance. (d) Productive output. 2. A company acquired a long term depreciable asset with an estimated useful life of 5 years for $25,000 at the beginning of 20X6. For financial statement purposes, how would the depreciation expense calculated using the sum-of- the-years-digits method compare with that calculated using the 200% declining balance method in 20X6 and 20X7, respectively, if the estimated salvage value is 0? 20X6 20X7 (a) Higher (b) Lower (c) Lower (d) Higher Lower Higher Lower Higher