Q1: A capital gain is calculated by the equation: A. Capital gain=book value - salvage value B. Capital gain= cost basis - book value C. Capital gain= market value - salvage value D. Capital gain= salvage value - cost basis Q2: a company has purchased an office with $100,000, with estimated useful life of 8 years and the depreciation recovery period of 5 years. If the office is applying an DDB to SL. Switching depreciation methods, the switch from DDB to SL: A. Will occur in year 2 B. Will occur in year 3 C. Will occur in year 4 D. Will not occur