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 Anton Company paid cash to extend the life of one of its assets. Which of the following choices accurately reflects how this event would affect the elements of the financial statements? Assets Liab. + Equity Rev. Exp. Net Inc. Stmt of Cash Plow A. + NA - NA NA NA NA NA NA NA NA NA + NA NA + + C. D. NA NA -IA - NA NA + + - Multiple Choice Option Option A Option D Option Chubb Company paid cash to purchase equipment on January 1, Year 1. Select the answer that shows how the recognition of depreciation expense in Year 2 would affect assets, liabilities, equity, net income, and cash flows. Assets Equity Net Income Liabilities NA Cash flow NA NA + + A. B. c. D. NA NA NA Multiple Choice option option option A option