Computing Straight-Line and Double-Declining-Balance Depreciation

On January 2, Haskins Company purchases a laser cutting machine for use in fabrication of a part for one of its key products. The machine cost $120,000, and its estimated useful life is five years, after which the expected salvage value is $7,500. Compute depreciation expense for each year of the machine's useful life under each of the following depreciation methods: Round answers to the nearest whole number, when applicable.

a. Straight-line

Year 1 $Answer

Year 2 $Answer

Year 3 $Answer

Year 4 $Answer

Year 5 $Answer

b. Double-declining-balance

Year 1 $Answer

Year 2 $Answer

Year 3 $Answer

Year 4 $Answer

Year 5 $Answer