1. U.S. Steel Company purchased equipment for $200,000 on January 1, 2014 The estimated useful life is 8 years and the residual at the end of the eight years is $20,000. U.S. Stell uses the double-declining balance depreciation method. What will be the carrying value (book value) at December 31, 2017?
2. Assume a corporation has a cash surrender value of $28,000 at the beginning of the year. During the year, a premium of $150,000 is paid, and the cash surrender value at the end of the year is $50,000.
Required: Record the entry for the premium payment.