Computing Straight-Line and Double-Declining-Balance Depreciation

On January 2, 2016, Dechow Company purchases a machine to help manufacture a part for one of its key products. The machine cost $306,180 and is estimated to have a useful life of six years, with an expected salvage value of $32,760.

Compute each year's depreciation expense for 2016 and 2017 for each of the following depreciation methods.

a. Straight-line 2016 $Answer 2017 $Answer

b. Double-declining-balance (Do not round the depreciation rate used in your calculations.) 2016 $Answer 2017 $Answer