Use the following information to answer questions 1-5. A pressurized spray

Use the following information to answer questions 1-5.

A pressurized spray painter was purchased on April 1 of the fiscal year for $3900. It has a useful life of 4 years

and a residual value of $300.

1. Determine depreciation expense for year one using the straight-line method. (Points : 3)

$300

$3900

$600

$675

2. Determine depreciation expense for year one using the double-declining-balance method. (Points : 3)

$3900.00

$1462.50

$2437.50

$1500.00

3. Determine depreciation expense for two using the straight-line method. (Points : 3)

$300

$3900

$600

$900

4. Determine depreciation expense for year two using the double-declining-balance method. (Points : 3)

$1218.75

$3900

$2437.50

$1500.00

5. If the equipment is sold at the end of year one for $3225 what will be the gain or loss on the sale

assuming that the company used the straight line method of depreciation. (Points : 3)

$1000

$100

$2225

$0