Please answer in an hour! You will get a thumbs up. Question 1 (a) (2 points)

Assume you purchase a new tractor on Jan 1, 2022 for a cost of $200,000. You estimate you will be able to use the tractor for 10 years, and it will have a salvage value of 10% of the original by the end of its useful life. Determine the book value at the end of the first year (December 31, 2022) using straight-line depreciation.

options:

	$18,000
	$180,000
	$185,000
	$182,000

Question 1 (b) (2 points)

A balance sheet (using current and noncurrent assets and liabilities- no intermediate) shows that a farmer has current assets of $80,000 and owner equity of $100,000. Her current ratio is 2 and her debt/equity ratio is 1.0. Determine the farmer's noncurrent liabilities.

Question 1 (b) options:

	$40,000
	$60,000
	$100,000
	unable to determine