Judds Company purchased a new plant asset on April 1, 2025, at a cost of $711,000. It was estimated to have a service life of 20 years and a salvage value of $60,000. Judds’ accounting period is the calendar year.

Instructions

a. Compute the depreciation for this asset for 2025 and 2026 using the sum of-the-years’-digits method.

b. Compute the depreciation for this asset for 2025 and 2026 using the double-declining-balance method.