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ABC Treasures Limited purchased a piece of equipment on January 1, 2020 for $56,000. The equipment is expected to have a 4 year useful life
ABC Treasures Limited purchased a piece of equipment on January 1, 2020 for $56,000. The equipment is expected to have a 4 year useful life and an $4,000 residual value. ABC has a December 31, 2020 year-end.
Required: 1. Compute the depreciation for 2020, 2021, 2022 & 2023 using: (a) the straight line method (b) the double-declining balance method
2. What is the carrying value of the equipment at December 31, 2023 under both methods?
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