1.Sparky paid $72,000 for equipment on January 1, 2017. The equipment has a five-year useful life and a residual value of $6,000. Using the double-declining balance method, depreciation for 2017 and the book value at December 31, 2017, would be:
2.If an asset has a five year life, which method of depreciation will always result in the smallest amount of depreciation in the last year?
3.Sparky purchased a building on three acres of land for a lump-sum price of $2,400,000. The building was completely furnished. The appraised values were $1,300,000, $780,000, and $520,000 for the building, land, and furniture and fixtures, respectively. The initial values of the building, land, and furniture and fixtures would be: