Calculate the amount of depreciation to report during the year ended December 31 for equipment that was purchased at a cost of $55,000 on October 1. The equipment has an estimated residual value of $5,000 and an estimated useful life of five years or 20,000 hours.

Suppose farmer lane grows and sells cotton in a perfectly competitive industry. the market price of cotton is $1.64 per kilogram, and his marginal cost of production is $1.44 per kilogram, which increases with output. assume farmer lane is currently earning a profit. can farmer lane do anything to increase his profit in the short run? farmer lane: a. cannot do anything to increase his profit. b. may or may not be able to increase his profit. c. can increase his profit by raising his price. d. can increase his profit by producing more output. e. can increase his profit by shutting down.