depreciation 448502

1. A plant asset purchased for $250,000 has an estimated life of 10 years and a residual value of $20,000. Depreciation for the second year of use, determined by the declining balance method at twice the straight line rate is . 2. A plant asset purchased for $300,000 at the beginning of the year has an estimated life of 5 years and a residual value of $30,000. Depreciation for the second year, determined by the sum of the years’ digits method is . 3. A plant asset with a cost of $320,000 and accumulated depreciation of $90,000, is given together with cash of $120,000 in exchange for a similar asset worth $330,000. The gain or loss recognized on the disposal (indicate by “G” or “L”) is . 4. A plant asset with a cost of $270,000, estimated life of 5 years, and residual value of $45,000, is depreciated by the straight line method. This asset is sold for $200,000 at the end of the second year of use. The gain or loss on the disposal (indicate by “G” or “L”) is . Please include all the calculations.