A machine which cost $300,000 is acquired on October 1, 2014. Its estimated salvage value is $30,000

Question:

A machine which cost $300,000 is acquired on October 1, 2014. Its estimated is $30,000 and its expected life is eight years.
Instructions
(1) Calculate depreciation expense for 2014 and 2015 by each of the following methods, showing the figures used.
(a) Double-declining balance
(b) Sum-of-the-years'-digits
(2) At the end of 2015, which method results in the larger accumulated depreciation amount?
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...