Calculate depreciation expense: straight-line and double-declining balance methods. (LO 2)

On January 1, 2008, Hsieh \& Wen's Gourmet Taste of Asia purchased kitchen equipment for \(\$ 51,500\). Hsieh \& Wen's was also charged \(\$ 1,650\) for shipping and installation. The equipment is expected to have a useful life of 8 years and a salvage value of \(\$ 3,150\).

a. Compute the depreciation expense for the years 2008 through 2010, using the straight-line method (December 31 is the fiscal year-end.).

b. Compute the depreciation expense for the years 2008 through 2010, 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?