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.

Calculate the depreciation expense for this assest for Years 1 and 2.

Year 1 Year 2

1. Depreciation expense using the straight-line method.

2. Depreciation expense using the double=declining balance method.