(QUESTIONS, DETAILS, AND STRUCTURE ATTACHED) 1. On April 1, 2014, Cyclone’s Backhoe Co. purchases a trencher for $277,000. The machine is expected to last five years and have a salvage value of $36,000. Compute depreciation expense for both years ending December 2015 and 2015 assuming the company uses the double-declining balance method. 2. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at at cost of $62,000. The machine’s useful life is estimated at 5 years, or 450,000 units of product, with a $12,500 salvage value. During its second year, the machine produces 76,000 units of product. Determine the machine’s second-year depreciation using the units of depreciation method. 3. In early January 2015, NewTech purchases a computer equipment for $184,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $38,000. Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. 4. In early January 2015, NewTech purchases computer equipment for $170,000 to use in operating activities for the next for years. it estimates the equipment’s salvage value at $34,000. Prepare a table showing depreciation and book value for each of the four years assuming double-declining balance depreciation. 5. On April 1, 2014, Cyclone’s Backhoe Co. purchases a trencher for $370,000. The machine is expected to last six years and have a salvage value of $37,000. Compute depreciation expense for both years ending December 2014 and 2015 assuming the company uses the straight-line method. ATTACHMENT PREVIEW Download attachment Connect 8 Quiz.docx 1. 2. 3. 4. 5.