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A company purchased freezer cases at a cost of $405,000. The estimated life of the freezer cases is 5 years, at which time they will
A company purchased freezer cases at a cost of $405,000. The estimated life of the freezer cases is 5 years, at which time they will have no salvage value. The company would like to compare allowable depreciation methods and decides to prepare depreciation schedules for the fixtures using the straight-line, double-declining-balance, and sum-of-the-years'-digits methods of depreciation. Using depreciation schedules, find the answers to the questions 1, 2, 3, and 4. 1. What is the book value at the end of 3 years using the straight-line depreciation method? $ (Simplify your answer.) 2. Using the double-declining balance method of depreciation, what is the book value at the end of the third year? (Simplify your answer.) 3. With the sum-of-the-years'-digits method of depreciation, what is the accumulated depreciation at the end of 3 years? $ 4. What amount of depreciation will be taken in year 4 with each of the methods? straight-line depreciation method double-declining-balance method $ sum-of-the-years'-digits method $
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