1. A company entered into the following transactions concerning its computer system: On January 1, 2010 purchased a computer system that cost $280,000. The estimated useful life of the computer is 3 years and salvage value is $40,000. Calculate the first years depreciation using (1) St. Line and (2) Double Declining Balance.

The management of a supermarket wants to adopt a new promotional policy of giving a free gift to every customer who spends > a certain amount per visit at this supermarket. the expectation of the management is that after this promotional policy is advertised, the expenditures for all customers at this supermarket will be normally distributed with a mean of $95 and a standard deviation of $20. if the management wants to give free gifts to at most 10% of the customers, what should the amount be above which a customer would receive a free gift?