At the beginning of the year, Mitt Corporation bought machinery, shelving, and a forklift. The machinery initially cost $$30,800$ but had to be overhauled $($at a cost of $$2,240)$ before it could be installed $($at a cost of $$1,120)$ and finally put into use. The machinerys total life was estimated as $40,000$ hours, with an estimated residual value of $$1,000.$ The machinery was actually used $5,000$ hours in year $1$ and $7,000$ hours in year $2.$ Repair costs were $$480$ in each year. 

 

The shelving cost $$9,950$ and was expected to last $5$ years, with a residual value of $$730.$ The forklift cost $$16,650$ and was expected to last six years, with a residual value of $$2,260.$

CP$9-1($Algo$)$ Part $5$

$5.$ Compute double$-$declining$-$balance depreciation expense for years $1$ and $2$ for the forklift. TIP: Remember that the formula for double$-$declining$-$balance uses cost minus accumulated depreciation $($not residual value$).$