1. Computer equipment was acquired at the beginning of the year at a cost of $65,000 that has an estimated residual value of $3,000 and an estimated useful life of 5 years. Determine the 2nd year's depreciation using straight-line depreciation.
a. $26,000
b. $24,800
c. $12,400
d. $13,000
2/. Which of the following is true?
a. If using the double-declining-balance the total amount of depreciation expense during the life of the asset will be the highest.
b. If using the units-of-production method, it is possible to depreciate more than the depreciable cost.
c. If using the straight line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance.
d. Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.