Problem 1: If Reneta's CDs purchases a new cash register for $2,700 and plans to use it for three years before disposing of it for an estimated $300, how much depreciation will Renata recognize the first year under the double-declining-balance method?
a. $1,800
b. $ 900
c. $1,600
d. $800
Problem 2: Tanner owns and operates a kite store. He buys kites for $15 each. He pays a commission for each kite sold of $3. His advertising costs are $2 per kite. If Tanner sells the kite for $30, how much net income will he make per kite?
a. $8
b. $10
c. $13
d. $28