1.Computer equipment was acquired at the beginning of year-1 at a cost of $67,000 that has an estimated residual value of $9,000 and an estimated useful life of 5 years (20 points)

a.Determine the 1^st and 2^nd year's depreciation expense, and accounts balances reported in balance sheets using the straight-line method (10 points).

Depreciation Expense:

Year 1:

Year 2:

Account Balances reported in Balance Sheet

Balance Sheets

12/31/Yr 1

12/31/Yr 2

Equipment

$

$

Accumulated Depreciation

()

()

Net Book Value of Equipment

$

$

b. Determine the 1^st and 2^nd year's depreciation expense, and accounts balances reported in the balance sheets using double-declining-balance method. (10 points)

Depreciation Expense:

Year 1:

Year 2:

Account Balances reported in Balance Sheet

Balance Sheets

12/31/Yr 1

12/31/Yr 2

Equipment

$

$

Accumulated Depreciation

()

()

Net Book Value of Equipment

$

$

2. (10 points) Widmer Company had gross wages of $240,000 during the week ended Jun