1) Orange Corp. constructed a machine at a total cost of $88 million. Construction was completed at the end of 2017 and the machine was placed in service at the beginning of 2018. The machine was being depreciated over a 7-year life using the sum-of-the-years'-digits method. The residual value is expected to be $8 million. At the beginning of 2021, Orange decided to change to the straight-line method. Ignoring income taxes, what will be Orange's depreciation expense for 2021? (Do not round your intermediate calculation and round final answer to 1 decimal place.)

Multiple Choice

• $7.1 million.

• $9.1 million.

• $17.1 million.

• $11.4 million.

2) Bowers Corporation reported the following ($ in 000s) for the year:

	Balance
	Beginning			Ending
Accounts receivable	$	520		$	810

Sales on account were $1,820,000 for the year. How much cash was collected from customers on account?

Multiple Choice

• $1,551 thousands.

• $1,530 thousands.

• $1,520 thousands.

• $2,100 thousands.