1. Schager Company purchased a computer system on January 1, 2014, at an out-of-pocket cost of $16,000. The estimated useful life is 10 years and the estimated residual value is $2,100. The company will use the double declining balance method of depreciation. What is the accumulated depreciation balance as of December 31, 2015?

2. On January 1, 2014, the Wasson Company purchased a delivery vehicle at a cost of $37,120. The vehicle has an estimated life of 6 years and a salvage value of $3,800. Wasson estimates the vehicle will get 98,000 miles. What is the book value of the vehicle as of December 31, 2015, assuming Wasson uses the units of production depreciation method and that the vehicle was driven 11,200 miles during 2014 and 19,200 miles during 2015?

Answer rating: 100% (QA)

1 Using the double declining balance method the depreciation rate would be 2 10010 20 D... View the full answer