At the beginning of Year 1, ABC Company purchased a piece of equipment for $900. This equipment was expected to last 6 years at which time ABC hoped to sell the equipment for $300. At the beginning of Year 7, ABC Company sold the equipment for $200. ABC Company uses the straight line depreciation method.

When the Year 1 Depreciation Expense is recognized, Total Assets will:

Group of answer choices

remain the same.

increase by $100.

decrease by $100.

change by more than $100.

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At the beginning of Year 1, ABC Company purchased a new piece of equipment for $20,000. It is expected to have a 10 year life and a $9,000 salvage value. ABC Company depreciates this asset using the double-declining-balance method. What is the balance of Accumulated Depreciation at the end of Year 2?