On July 1, 2010, Seminole Construction Corporation purchased equipment for $62,000. Seminole also paid $2,500 to train

Question:

On July 1, 2010, Seminole Construction Corporation purchased equipment for $62,000. Seminole also paid $2,500 to train employees how to use it. The equipment is expected to have a useful life of eight years and a salvage value of $500.

1. Compute the depreciation expense for years ended June 30, 2011–2013, using the straight-line method.

2. Compute the depreciation expense for the years ended June 30, 2011–2013, using the double-declining balance method. (Round your answers to the nearest dollar.)

3. What is the book value of the equipment at the year ended June 30, 2013, under each method?

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...