Depreciation by Two Methods; Partial Years

Knife Edge Company purchased tool sharpening equipment on July 1, 20Y5, for $16,200. The equipment was expected to have a useful life of three years and a residual value of $900.

Instructions:

a. Determine the amount of depreciation expense for the years ended December 31, 20Y5, 20Y6, 20Y7 and 20Y8 by the straight-line method.

	Depreciation Expense
20Y5	$fill in the blank 1
20Y6	$fill in the blank 2
20Y7	$fill in the blank 3
20Y8	$fill in the blank 4

b. Determine the amount of depreciation expense for the years ended December 31, 20Y5, 20Y6, 20Y7 and 20Y8 by the double-declining-balance method. Round the double-declining-balance depreciation rate to six decimal places and round your final answers to the nearest whole dollar.

	Depreciation Expense
20Y5	$fill in the blank 5
20Y6	$fill in the blank 6
20Y7	$fill in the blank 7
20Y8	$fill in the blank 8