Finance Question

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1. An asset was purchased for $58,000 and originally estimated tohave a useful life of 10 years with a residual value of $3,000. Aftertwo years of straight-line depreciation, it was determined that theremaining useful life of the asset was only 2 years with a residualvalue of $2,000.a) Determine the amount of the annual depreciation for the first two years.b) Determine the book value at the end of Year 2.c) Determine the depreciation expense for each of the remaining years after revision.2. Machinery is purchased on July 1 of the current fiscal year for$240,000. It is expected to have a useful life of 4 years, or 25,000operating hours, and a residual value of $15,000. Compute thedepreciation for the last six months of the current fiscal year endingDecember 31 by each of the following methods:(a) straight-line(b) double-declining-balance(c) units-of-output (used for 1,600 hours during the current year)