On january 1, jamaica company purchased equipment for $18,000. the estimated salvage value is $4,000 and the estimated useful life is 5 years. on december 31 of the fourth year, and before adjusting entries have been made, the company decided to extend the estimated useful life of the equipment by two years giving it a total life of 7 years. the company did not change the salvage value and continues to use the straight-line method. what is the depreciation expense for the fourth year?
a) $4,000
b) $2,000
c) $2,800
d) $1,400
e) $1,500

Anew 2-lane road is needed in a part of town that is growing. at some point the road will need 4 lanes to handle the anticipated traffic. if the city's optimistic estimate of growth is used, the expansion will be needed in 4 years and has a probability of happening of 40%. for the most likely and pessimistic estimates, the expansion will be needed in 8 and 15 years respectively. the probability of the pessimistic estimate happening is 20%. the expansion will cost $ 4.2 million and the interest rate is 8%. what is the expected pw the expansion will cost?