A backhoe acquired on January 5 at a cost of $84,000 has an estimated useful life of

Question:

A backhoe acquired on January 5 at a cost of $84,000 has an estimated useful life of 12 years. Assuming that it will have no residual value, determine the depreciation for each of the first two years
(a) By the straight-line method and
(b) By the declining-balance method, using twice the straight-line rate. Round to the nearest dollar.