Choice Among Depreciation Methods

Walnut Ridge Production Inc. purchased a new computerized video$-$editing machine at a cost of $$370,000.$ The system has a residual value of $$56,300$ and an expected

life of $5$ years.

Required:

Compute depreciation expense, accumulated depreciation, and book value for the first $3$ years of the machine's life using:

a$.$ The straight$-$line method.

Depreciation Accumulated

End of Year

Expense

Depreciation

Book Value

$1$

$2$

$3$

b$.$ The double$-$declining$-$balance method.

Depreciation

End of Year

Expense

Accumulated

Depreciation

Book Value

$

$1$

$2$

$3$