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Question 1 - Computer equipment was acquired at the beginning of the year at a cost of $65,835 that has an estimated residual value of $2,819 and an estimated useful life of 5 years. Determine the second-year depreciation using the straight-line method.
a. $13,167.00
b. $13,730.80
c. $25,206.40
d. $12,603.20
Question 2 - A building with an appraisal value of $129,056 is made available at an offer price of $150,900. The purchaser acquires the property for $33,290 in cash, a 90-day note payable for $31,852, and a mortgage amounting to $54,834. The cost basis recorded in the buyer's accounting records to recognize this purchase is
a. $129,056
b. $117,610
c. $150,900
d. $119,976
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