Miracle Inc acquired a machine that cost $50,000 early in 1999 The machine is expected to last for 10 years, and its estimated salvage value at the end of its life is $5,000(6 points) 1 Using straight line depreciation, calculate the depreciation expense to be recognized in the second year of the m...

1 Cost of Machine 50000 Less Salvage value 5000 Depreciable Value 45000 Useful life 10 yea ...

Miracle Inc. acquired a machine that cost $50,000 early in 1999. The machine is expected to last

Question:

Miracle Inc. acquired a machine that cost $50,000 early in 1999. The machine is expected to last for 10 years, and its estimated at the end of its life is $5,000(6 points).
1. Using straight-line depreciation, calculate the depreciation expense to be recognized in the second year of the machine’s life and calculate B/V after the second year of the machine’s life.
2. Using double-declining (200%) depreciation method, calculate the depreciation expense for the second year of the machine’s life and B/V after the second year of the machine’s life.
3. Using sum-of-the-years-digit depreciation, calculate the depreciation expense to be recognized in the second year of the machine’s life and B/V after the second year of the machine’s life.

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...