Exercise: 2 A plant assets required at a total cost of $37,500 has an estimated scrap value of $2,500 and an anticipated useful life of 7 years. Determine: 1. The annual rate (expressed as a percentage or fraction) of depreciation using the straight-line-method. 2. The annual depreciation using the straight line method. 3. The first year's straight-line depreciation, assuming that the asset was acquired 3 months into the current accounting period. 4. Continuing with assumption (3), the value of the accumulated depreciation account after the second year's depreciation is recognized. 5. The residual value for the plant assets after the asset has been depreciated for 7 years. 6. Using the information presented at the beginning of the exercise 2, determine the five items assuming asset depreciation and using the double-declining method of recognizing depreciation. 7. Using the information presented at the beginning of the exercise 2, determine the five items assuming asset depreciation and using the sum of the years' digits method.