5.

[The following information applies to the questions displayed below.] On April 1, Cyclone's Co. purchases a trencher for $286,000. The machine is expected to last five years and have a salvage value of $43,000.

Part 1

Compute depreciation expense at December 31 for the first and second year assuming the company uses the straight-line method.

	Choose Numerator	/	Choose Denominator	=	Annual Depreciation
		/		=
		/		=
Year		X		=
First Year		X
Second Year		X

Part 2

Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double-declining-balance method. (Enter all amounts as positive values.)

	Depreciation for the Period				End of Period
Annual Period	Beginning of Period Book Value	Depreciation Rate	Partial Year	Depreciation Expense	Accumulated Depreciation	Book Value
Year 1
Year 2