P1) Short Company purchased land by paying $21,000 cash on the purchase date and agreeing to pay $21,000 for each of the next six years beginning one-year from the purchase date. Short's incremental borrowing rate is 9%. On the balance sheet as of the purchase date, after the initial $21,000 payment was made, the liability reported is closest to

a) 126,000

b) 94,204

c) 155,204

d) 75,130

P2) Schager Company purchased a computer system on January 1, 2014, at a cash cost of $27,200. The estimated useful life is 10 years, and the estimated residual value is $4,100. The company will use the double declining-balance depreciation method. How much is the 2015 depreciation expense?

A) 4,352

B) 3,696

C) 4,620

D) 5,440