Depreciation Calculations Neilson’s Hardware Company has a giant paint mixer that cost $51,300 plus $700 to install.

The estimated salvage value of the paint mixer at the end of its useful life in eight years is estimated to be $4,000. Neilson’s estimates that the machine can mix 720,000 cans of paint during its lifetime.

Required:

Compute the second full year’s depreciation expense, using the following methods:

1. Double-declining-balance.

2. Sum-of-the-years’-digits.