EXERCISES CHAPTEFR 7: Operational Assets: Utilization and Impairment 1)-On January 1, we purchase equipment for $70,000 cash. The equipment has an estimated service life of 5 years and estimated residual value of $10,000 1- What is the annual straight-line depreciation expenses? 2-Using SYD, compute depreciation for the first two years. 3-What is depreciation for the first two years using double-declining- balance? 11)-On January 1, we purchased equipment for $70,000 cash. The equipment is expected to produce 100,000 units during its life and has an estimated residual value of $5,000. If 35,000 units were produced this year, what is the amount of depreciation