Chapter 7 Fixed Assets, Natural Resources, and Intangible Assets Depreciation by two methods; partial years P7-3 Knife Edge Company purchased tool sharpening equipment on July 1, 20Y5, for $16,200. The equipment was expected to have a useful life of three years and a residual value of $900. Instructions Determine the amount of depreciation expense for the years ended December 31, 20Y5, 20Y6, 20Y7, and 20Y8, by (a) the straight-line method and (b) the double-declining-balance method. Donrociation br tuo methode cale nf fived asset O Search Data Page Layout Formulas Review View Help Home Insert X Cut A A Arial -110 Wrap Text Copy Conditional Forma Formatting- S % BIU A Merge & Center Format Painter Table Clipboard Alignment Number Font M N B C F G H J K L C P swers are entered in the cells with gray backgrounds. ls with non-gray backgrounds are protected and cannot be edited. ed asterisk () will appear either beside or below an incorrect answer. Straight-line method: Depreciation Original Cost Residual Value Life (Years) Fraction of Year Expense 205 + ( 206 20 - 208. b. Double-declining-balance method: Accumulated Depreciation Original Cost Depreciation Rate Fraction of Year Expense 20Y5 20Y6 ) x 20Y7 Residual Value 208. Pr. 7-3 Type here to search