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1. Coronado Industries purchased a depreciable asset for $750000. The estimated salvage value is $42000, and the estimated useful life is 10 years. The double-declining balance method will be used for depreciation. What is the depreciation expense for the second year on this asset?
2. Waterway Industries takes a full year's depreciation expense in the year of an asset's acquisition and no depreciation expense in the year of disposition. Data relating to one of Waterway's depreciable assets at December 31, 2018 are as follows:
Acquisition year 2016
Residual value 44000
Accumulated depreciation 187000
Estimated useful life 5 years
Using the same depreciation method as used in 2016, 2017, and 2018, how much depreciation expense should Waterway record in 2019 for this asset?
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