Q1 A company purchased factory equipment for $150,000. It is estimated that the equipment will have a $15,000 salvage value at the end of its 5-year useful life. If the company uses the DECLINING BALANCE method of depreciation, the amount of DEPRECIATION EXPENSE for the 1st YEAR after purchase would be:

	$36,000
	$60,000
	$30,000
	$54,000

Q2

The method most commonly used and appropriate method to compute DEPLETION of a coal mine is:

	Units of activity
	Declining Balance
	Straight line
	All of these methods are used