Problem 7: Retail inventory method at average cost San Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of October 2018: Cost Retail Beginning inventory $35,000 50,000 Net purchases 20,000 32,000 Net markups 500 Net markdowns 2,500 Net sales 45,000 Required: Determine the company's ending inventory and cost of goods sold. Problem 8: Change in depreciation estimates Universal Tools Company purchased a machine on July 1, 2015 for $180,000. The machine was estimated to have a useful life of 10 years and a salvage value of $20,000. The company's fiscal year ends on December 31. Required: 1) What was Universal Tools' depreciation expense for 2015 and 2016 under the Double- declining balance method? 2) Suppose on Jan. 1, 2017, Universal Tools decided that the machine's remaining useful life (starting from Jan. 1, 2017) was only 6 years and the salvage value was only $15,000, and that it was more appropriate to apply the straight-line depreciation method from then on. Calculate the depreciation expense for 2017