Asphalt Inc. lays asphalt in parking lots and roadways. This year they were awarded the state roadway contract and decided to purchase new equipment. Asphalt purchased a new piece of equipment with a cost of $43,600 and a $6,000 salvage value, and placed it into service on April 1, Year 1. The equipment was installed at an additional cost of $3,400. The estimated life of the equipment is 8 years. Use the spreadsheet below to calculate the depreciation expense for this asset for Years 1 and 2. Enter your answers in the appropriate shaded cell. Note: To use a formula in the spreadsheet, it must be preceded by an equal sign (e.g., =A1+B1).

C2 1. Depreciation expense using the straight-line method. 3 2. Depreciation expense using the double-declining balance method. Year 1 Year 2