Depreciation by Two Methods

A Kubota tractor acquired on January $8$ at a cost of $$297,000$ has an estimated useful life of $10$ years. Assuming that it will have no residual value.

a$.$ Determine the depreciation for each of the first two years by the straight$-$line method.

First Year

Second Year

b$.$ Determine the depreciation for each of the first two years by the double$-$declining$-$balance method. Do not round the double$-$declining balance rate.

If required, round your final answers to the nearest dollar.

First Year

Second Year

Feedback

Check My Work

Asset cost minus residual value equals depreciable cost. Book value is the asset cost minus accumulated depreciation. In the first year, the balance in the accumulated depreciation account is zero.