Depreciation Computations Hsin-Yo Company purchases an $850,000 piece of equipment on January 2, 2007, for use in its manufacturing process. The equipment’s estimated useful life is 10 years with no salvage value. Hsin-Yo uses 150% declining-balance depreciation for all its equipment.

1. Compute the depreciation expense for 2007, 2008, and 2009.

2. Compute the book value of the equipment on December 31, 2009.