Use the following information for questions 17 to 20:

Cost: $10,000

Salvage $1,000

Useful life: 5 years

Units over life: 36,000

17. What is the second year depreciation expense under declining-balance = 200%?

A. $4,000

B. $1,440

C. $864

D. $2,400

18. What is the fourth year depreciation expense under sum-of-years digits?

A. $2,400

B. $1,000

C. $1,100

D. $1,200

19. Assume the asset produced 13,000 units. What is the depreciation expense under the units of production method?

A. $1,300

B. $2,500

C. $3,250

D. $4,250

20. Assume the declining-balance = 200% method is used. What is the residual book value at the end of year 2?

A. $6,000

B. $3,600

C. $2,160

D. $1,296

Exam 2 Softbste Inc. Balance Sheet December 31,2012 Assets Cash Accounts Receivable Inventory Property, Plant & Equipment $500,000 00,000 00,000 900,000 100,000 Total Assets Accounts Payable Notes Payable Common Stock Retained Eamings Total Liabilities & Equity $300,000 1,000,000 500,000 500000