me: A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life or 18,000 hours. What is the amount of depreciation for the second full year, using the double declining-balance method? 43. $18,750 $17,500 c. $37,500 d. $16,667 44. How does paying a liability in cash affect the accounting equation? a. b. liabilities decrease; stockholders' equity increases assets increase; liabilities decrease c. assets decrease; liabilities decrease d. assets increase; liabilities increase The following units of an inventory item were available for sale during the year: Beginning inventory First purchase Second purchase Third purchase 10 units at $50 25 units at $55 30 units at $60 15 units at $65 The firm uses the periodic inventory system. During the year, 60 units of the item were sold. 45. The value of ending inventory using LIFO is: a. $1,050 b. $1,275 c. $1,150 d. $1,250 46. The value of ending inventory using average cost is: a. $1,050 b. $1,163 c. $1,275 d. $1,252 47. The value of ending inventory using FIFO is: a. $1,150 b. $1,275 c. $1,050 d. $1,250