Calculate depreciation expense: straight-line and double-declining balance methods. (LO 2) On January 1, 2006, Norris Company purchased
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Calculate depreciation expense: straight-line and double-declining balance methods. (LO 2)
On January 1, 2006, Norris Company purchased equipment for \(\$ 42,000\). Norris also paid \(\$ 1,200\) for shipping and installation. The equipment is expected to have a useful life of 10 years and a salvage value of \(\$ 3,200\).
a. Compute the depreciation expense for the years 2006 through 2008, using the straight-line method.
b. Compute the depreciation expense for the years 2006 through 2008, using the double-declining balance method. (Round your answers to the nearest dollar.)
c. What is the book value of the equipment at the end of 2008 under each method?
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