The Archer Farms Company purchased equipment on January 1.2003, for S450,000. The useful life was estimated at eight years, with salvage value at the end ofthat time ofS50,000. The machine has an estimated useful life in productive output of 100,000 units. Actual output was 12,000 units in year 1 and 9,000 units in year 2.Compute the depreciation expense for each of the years 2003 and 2004 using the following methods: Q1 Under the straight line method, the first year depreciation expense is: A 112,500 B. 84,375 C. 50,000 D. 36,000 E 48,000 Q2. Under the Double-declining balance method, the second year depreciation expense is A 112,500 B 84,375 50,000 D. 36,000 E 48,000 Q3 Under the Units-ofproduction method, the second year depreciation expense is A 112,500 B 84.375 C. 50,000 36.000 48,000 Q4. What is the present value of 4 equal payments of s12,000 with an interest rate of 5%? 0.93 2 1.ag 1.86 183 1 17a 1.74 1.74 2 0.02 001 089 087 086 084 0.83 3 278 272 267 262 258 253 249 3 0B6 0.84 082 an 0.75 363 355 339 331 124 117 085 082 0.70 78 0.74 0.7 410 399 389 3.79 2 0, 0.75 0.71 524 508 068 0.65 62 462 449 436 A $48.000 B. 45,600 CS42,600 D.$9.840 Q5.On January 1,Y4 Seton Corp. issued a three-year, $300,000, 6% bond (stated rate), which sold for a yield of 7% (the market rate). Interest is paid annually on December 31. Price was the bond issued? A. $300,000 B. S293,160 287,540 D. S252,000 E.246,000 Q6. On January 1. Y6 Tosen Corp. issued a four-year, bond (stated rate), which sold for a yield of 6% (the market rate). Interest is paid annually on December 31. At what price was the bond issued? A. S79.000 B. S100,000 105.000 D. 247,000 E.423,000