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Conok Company has a fiscal year ending on Dec 31 each year. The company purchased (on April 1, 2015) equipment with a total cost of

Conok Company has a fiscal year ending on Dec 31 each year. The company purchased (on April 1, 2015) equipment with a total cost of $500,000, estimated useful life of 10 years, and estimated salvage value of $70,000. On Jan 1, 2017, the company automated the equipment at a cost of $200,000 to facilitate 24 hours operations. This doubled production of the asset but the useful life was decreased by 4 years. Prepare a depreciation table (like the one shown below) to calculate the depreciation expense and the accumulated depreciation each year using the double declining balance method.

Year Beginning Net Book Value DEPRECIATION RATE (%) DEPRECIATION EXPENSE ACCUMULATED DEPRECIATION ENDING NET BOOK VALUE
2015 $500,000 20% $100,000 $75,000 $425,000
2016 $425,000 20% 85000 $540,000
2017 $540,000 47.06% $254,118 $414,118 $285,882
2018 $285,882 47.06% $134,533 $548,651 $151,349
2019 $151,349 47.06% $71,223 $619,874 $80,126
2020 $80,126 47.06% $37,706 $657,580 $42,420
2021 $42,420 11.76% $4,991 $662,571 $37,429

I'm not sure how to calculate the salvage value into my table.

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