On January 1 Year 1, Warren Co. purchased a machine for $120,000. Warren estimated the useful life of the machine to be 10 years and the salvage value to be $20,000. Indicate whether each of the following statements is true or false. a) Depreciation expense for Year 1 under the straight-line method would be $12,000. b) Depreciation expense for Year 1 under the double declining method would be $24,000. c) The accumulated depreciation at the end of Year 2 under the straight-line method would be $20,000 d) The accumulated depreciation at the end of Year 2 under the double declining method would be $48,000. e) The book value of the machine under both the double declining method and the straight-line method at the end of 10 years would be $20,000. Saved Indicate whether each of the following statements is true or false. a) Loaning cash to another company is considered a financing activity on the statement of cash flows. The major difference between treating the extension of credit to a customer as accounts receivable and treating it as notes receivable is the existence of interest. c) In a promissory note, the payee issues the note to the maker. d) Interest rates are always stated on an annual basis, regardless of the length of the note. 0) Accruing interest on a note receivable is considered an asset use transaction