Cosby AG purchased a new plant asset on April 1, 2019, at a cost of €774,000. It was estimated to have a service life of 20 years and a residual value of €60,000. Cosby's accounting period is the calendar year.
Instructions
a. Compute the depreciation for this asset for 2019 and 2020 using the sum-of-the-years'-digits method.
b. Compute the depreciation for this asset for 2019 and 2020 using the double-declining-balance method.