At the beginning of 2012, Beefs Steak House constructed a new walk-in freezer that had a useful life of 10 years. At the end of 10 years, the motor could be salvaged for $3,500. In addition to construction costs that totaled $15,000, the following costs were incurred:

Sales taxes on components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,100

Delivery costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700

Installation of motor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300

Painting of both interior and exterior of freezer . . . . . . . . . . . . . . . . . 200

1. What is the cost of the walk-in freezer to Beefs?

2. Compute the amount of depreciation to be taken in the first year assuming Beefs uses the

a. Double-declining-balance method

b. Sum-of-the-years’-digits method