If he purchase price of a computer network is $12,000 and the computer will be used for three years with a residual value of $2,000 at the end of the three years, what is the annual cost of the network during this period if a straight- line depreciation method is used?

Now suppose that the use of the network follows a pattern in which the number of hours in use is 2,920 for Year 1, 2,190 for Year 2, and 1,460 for Year 3. All other conditions are the same. What is the first years cost of the network if a usage rate depreciation method is used?