Question
Becker Office Service purchased a new computer system on January 1, 2018, for $39,100. It is expected to have a five-year useful life and a
Becker Office Service purchased a new computer system on January 1, 2018, for $39,100. It is expected to have a five-year useful life and a $3,500 salvage value. Becker Office Service expects to use the computer system more extensively in the early years of its life.
-Calculate the depreciation expense for each of the five years, assuming the use of straight-line depreciation
-Calculate the depreciation expense for each of the five years, assuming the use of double-declining-balance depreciation. (Enter all amounts as positive values. Do not round intermediate calculations. Round "SL rate" answers to 2 decimal places. Round your answers to the nearest dollar amount.)
-Assume that Becker Office Service sold the computer system at the end of the fourth year for $19,000. Compute the amount of gain or loss using each depreciation method. (Negative amounts should be indicated with a minus sign. Do not round intermediate calculations. Round the final answers to nearest dollar amount.)
PLEASE SHOW ALL WORK FOR BETTER UNDERSTANDING. MY NUMBERS ARE NOT RIGHT, AND I WOULD LIKE TO SEE WHERE I AM GOING WRONG. THANK YOU!!
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