January 1, Year 3 a major overhaul was made on the machine costing $5,000 and the total estimated eful life was extended 4 years. Depreciation expense for year the year ending December 31, Year 3 is: a) $3,000 b) $2,900 c) $3,200 d) $3,700 e) $3,100 5. A company purchases a small manufacturing business for a lump sum of $950,000. This purchase includes: A piece of land valued at $400,000 A factory building valued at $300,000 Machinery and equipment valued at $200,000 Inventory valued at $100,000 What is the cost will be allocated to each asset? 6. Some seed cleaning equipment was purchased in 2009 for $8,500 and is depreciated by the double-declining balance (DDB) method for an expected life of 12 years. What is the book value of the equipment at the end of 2014? Original salvage value was estimated to be $2,500 at the end of 12 years. 7. Our company is considering the purchase of a second-hand scanning microscope at a cost of $10,500, with an estimated salvage value of $500 and a projected useful life of fou