34. Lester Company purchases a piece of equipment on Jan. 2, 20x7, for $30,000. The equipment has an estimated life of eight years or 50,000 units of production and an estimated residual value of $3,000. Lester uses a calendar fiscal year. The amount of depreciation to be recorded for 20x7, using the double-declining-balance method. is A) $4,500. B) $5,000. C) $5,500. D) $7,500. 35. Lester Company purchases a piece of equipment on Jan. 2, 20x7, for $30,000. The equipment has an estimated life of eight years or 50,000 units of production and an estimated residual value of $3,000. Lester uses a calendar fiscal year. The amount of depreciation to be recorded for 20x7, using the production method and assuming that 6,800 units are produced, is A) $3,400 B) S3,536. C) S3,672. D) $3,808. 36. Equipment is purchased for $80,000. It has an eight-year useful life and a $35,500 residual value. Under the double-declining-balance method, what is the depreciation expense for year 3? A) $11,250 B) $9,000 C) $9,500 D) $10,000 37. On January 1, a machine with a useful life of five years and a residual value of $3,000 is purchased for $15,000. What is the depreciation expense in year 3 under straight- line depreciation? A) $3,000 B) $2,400 C) S7,200 D) $9,000