2. Mark the following statements as True or False, then select the corresponding multiple-choice answer:

_____Accumulated depreciation is a contra-asset account that decreases the historical cost of a fixed asset todetermine its book value.

_____Land improvements are not depreciated.

_____The depreciable base of an asset is the cost of the asset less anticipated salvage value.

A.True, True, True

B.True, False, False

C.True, False, True

D.False, True, True

E.False, False, False

3. A company purchased equipment on January 1, 2015 for $80,000.It is estimated that the equipment will have a $2,000 salvage value at the end of it 6-year useful life.It is also estimated that the equipment will produce 100,000 units over its 6 year useful life.If 15,000 units of product are produced in 2015 and 20,000 units are produced in 2016, what is thebook valueof the equipment at December 31, 2016?The company uses the units-of-production depreciation method.

A.$52,700

B.$52,000

C.$50,000

D.$27,300

E.$50,700