Question
A machine costing $251,800 was purchased May 1. The machine should be obsolete after three years and, therefore, no longer useful to the company. The
A machine costing $251,800 was purchased May 1. The machine should be obsolete after three years and, therefore, no longer useful to the company. The estimated salvage value is $3,400. Calculate the depreciation expense for each year of its expected useful life using each of the following depreciation methods: (a) straight-line, (b) double-declining balance. For double-declining balance, do not round until your final answer. Round your final answers to the nearest dollar.
a. Straight-line:
Year 1:?
Year 2:82400
Year 3:82400
Year 4:?
b. Double-declining balance:
Year 1:?
Year 2:?
Year 3:?
Year 4:?
Please just help me figure out answers 1 and 4 for part a, and all years for part b. I know that the value for year 4 is not 0 for part a and part b.
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