On July 1, 2014, Sport Company purchased for $2,880,000 snow making machine equipment having an estimated useful life of 5 years with an estimated salvage value of $120,000. Depreciation is taken for the portion of the year the asset is used.

Instructions; determine the depreciation expense and year-end book values for 2014 & 2015

a)

Sum-of-the-years'-digits method	2014	2015
Equipment	$2,880,000	$2,880,000
Less: Accumulated Depreciation
Year-End Book Value
Depreciation expense