multiple choice questions

a 1) A monthly depreciation expense of $600 is recorded on a truck that was purchased for $27 000 and has a $3 000 estimated residual value. The annual depreciation rate is: a) 25%. b) 27%. c) 30%. d) 33%. BC 2) A purchase of equipment for $18 000 also involved freight charges of $500 and installation costs of $2 500. The estimated salvage value and useful life are $2 000 and 4 years, respectively. Under the straight-line method, annual depreciation expense will be: a) $4 750. b) $4 500. c) $4 125. d) $4 625