Depreciation calculation methods Millco Inc. acquired a machine that cost $1,800,000 early in 2022. The machine is expected to last for eight years, and its estimated salvage value at the end of its life is $180,000. Required: Using straight-line depreciation, calculate the depreciation expense to be recognized in the first year of the machines life and calculate the accumulated depreciation after the fourth year of the machines life. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense for the third year of the machines life. What will be the net book value of the machine at the end of its eighth year of use before it is disposed of, under each depreciation method?

Depreciation calculation methods Millco Inc. acquired a machine that cost $1,800,000 early in 2022. The machine is expected to last for eight years, and its estimated salvage value at the end of its life is $180,000. Required: Using straight-line depreciation, calculate the depreciation expense to be recognized in the first year of the machines life and calculate the accumulated depreciation after the fourth year of the machines life. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense for the third year of the machines life. What will be the net book value of the machine at the end of its eighth year of use before it is disposed of, under each depreciation method?

Depreciation calculation methods partial year Freedom Co. purchased a new machine on July 2, 2022, at a total installed cost of $198,000. The machine has an estimated life of five years and an estimated salvage value of $27,000. Required: Calculate the depreciation expense for each year of the assets life using:

Straight-line depreciation.

Double-declining-balance depreciation.

How much depreciation expenses should be recorded by Freedom Co. for its fiscal year ended December 31, 2022, under each method? (Note: The machine will have been used for one-half of its first year of life.) Calculate the accumulated depreciation and net book value of the machine at December 31, 2023, under each method.