A) Chippawa Industries acquired a delivery truck on January 4, 2012. The total cost of the truck was $150,000. Chippawa estimated that the truck would be used for 8 years before being sold for an estimated $23,500. Chippawa uses the double-declining balance method of depreciation. The total depreciation expense for the year ended December 31, 2012 was

1-$37,500 2-$30,375 3-$18,125 4-$15,188

B) Wind Streamers, Inc. acquired a piece of machinery on January 3, 2012. The total cost of the machinery was $68,400. Wind Streamers estimated that the machinery would be used to produce 100,000 units of product before being sold for an estimated $11,400. Wind Streamers uses the units-of-production method of depreciation. Assuming the machine produced 22,200 units during the year ended December 31, 2012, the 2012 depreciation expense was:

1) $18,500

2) $14,800 3) $12,654 4) $10,50