(For questions 1-2)

A company acquired a machine on 7/1/14 for $225,000. The machine has a 5-year life and a 10% salvage value. Assuming straight line depreciation.

1. What is depreciation expense at the end of the first year? (2014)

a. $22,500

b. $4,500

c. $2,250

d. $20,250

2. What is the accumulated depreciation at 12/31/15?

a. $60,750

b. $67,500

c. $6,075