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Kelly Inc. purchased equipment for $420,000, the useful life of the equipment is 10 years and the residual value is $20,000. Kelly Inc. estimates that the equipment will run for 800,000 hours. In year 1, Kelly used the equipment for 20,000 hours. What is the depreciation expense that Kelly Inc. will record using the units of production method for year one? $10,500 $304,000 $25,400 $10,000 1 1 point Kelly Inc. purchased equipment for $400,000, the useful life of the equipment is 10 years and the residual value is $20,000. Using the double-declining method what is the depreciation expense in the first year? $38,000 $40,000 $80,000 $30,000 Suppose Derek Corp sold equipment for $8,000 cash. The equipment was purchased for $110,000 and was depreciated using the straight line method. The accumulated depreciation account had a balance of $100,000. What amount of gain or loss will be recorded? $2,000 Gain $2,000 Loss $10,000 Gain $10,000 Loss D