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Depreciation Grayson Company purchased equipment on January 1, year 1 at a cost of $649,000. The equipment is expected to have a useful service life
Depreciation Grayson Company purchased equipment on January 1, year 1 at a cost of $649,000. The equipment is expected to have a useful service life of 10 years and an estimated salvage value of $30,000. 1. Calculate depreciation expense for the first three years using. a. The straight-line depreciation method b. The sum-of-the-years digits depreciation method c. The double declining balance depreciation method 2. What would the amount of depreciation be for the first year, if the asset was purchased on April 1 of year one and the company computes depreciation using the double declining balance method. Grayson Company purchased equipment on January 1, year 1 at a cost of $649,000. The equipment is expected to have a useful service life of 10 years and an estimated salvage value of $30,000. 1. Calculate depreciation expense for the first three years using. a. The straight-line depreciation method b. The sum-of-the-years digits depreciation method c. The double declining balance depreciation method 2. What would the amount of depreciation be for the first year, if the asset was purchased on April 1 of year one and the company computes depreciation using the double declining balance method
Depreciation Grayson Company purchased equipment on January 1, year 1 at a cost of $649,000. The equipment is expected to have a useful service life of 10 years and an estimated salvage value of $30,000. 1. Calculate depreciation expense for the first three years using. a. The straight-line depreciation method b. The sum-of-the-years digits depreciation method c. The double declining balance depreciation method 2. What would the amount of depreciation be for the first year, if the asset was purchased on April 1 of year one and the company computes depreciation using the double declining balance method.
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