Use the sliders provided above for (1) expected useful life, and (2) estimated residual value to answer the following questions:

1.	Assume that the equipment has an expected useful life of 10 years and an estimated residual value of $40,000.

a.	Determine depreciation expense for the year ended December 31, 20x1.
	$

b.	Determine depreciation expense for the year ended December 31, 20x2.
	$

c.	In 20x2, depreciation expense will be - Select your answer -larger thansmaller thanthe same asCorrect 3 of Item 6 the depreciation expense in 20x1.

d.	Determine the book value of the equipment that should be reported on the December 31, 20x1 balance sheet.
	$

e.	As the equipment is depreciated each year, the book value of the equipment that is reported on the balance sheet will - Select your answer -increasedecreaseremain the sameCorrect 5 of Item 6.

2.	Assume that the equipment has an expected useful life of 5 years and an estimated residual value of $70,000.

a.	Determine depreciation expense for the year ended December 31, 20x1.
	$

b.	Determine depreciation expense for the year ended December 31, 20x2.
	$

c.	If the estimated residual value remains the same, an increase in the estimated useful life of the equipment will result in - Select your answer -higherlowerthe sameCorrect 8 of Item 6 depreciation expense.

d.	Determine the book value of the equipment that should be reported on the December 31, 20x2 balance sheet.
	$

e.	If the estimated useful life remains the same, an increase in the estimated residual value of the equipment will result in - Select your answer -higherlowerthe sameCorrect 10 of Item 6 depreciation expense in years 20x1 and 20x2.