Response to the following problem:
An asset is acquired at the beginning of the accounting period at a total cost of $7,850. It is expected to have a useful life of 5 years and a scrap value of $350.
Determine:
1. The annual rate of depreciation using the straight-line method:
2. The depreciable value of the asset;
3. The amount of annual depreciation expense to be recognized;
4. The total depreciation recognized after the third year;
S. The nct asset value after recognizing three years of depreciation.