A firm purchases an asset with the following characteristics on January 1st 2018: Purchase price from dealer = $200 Shipping cost to get the asset in place and ready to use = $50 Useful life is estimated to be 10 years Salvage value at the end of 10 years is estimated to be $150 The company estimates that the assets net present value is $500 using a discount rate of 10%.

Part 1: What is the depreciation expense for this asset in 2018 and 2019 (it will be the same number in 2018 and 2019)?

Part 2: After recording depreciation expense at the end of 2019, what is the balance in the "accumulated depreciation" account for this specific asset?

Part 3: After recording depreciation expense at the end of 2019, what is the book value of this asset?