Depreciation Schedules & Disposals Madrigal Corporation acquired a new vehicle for $82,000. The asset has a 5 year expected useful life and a residual value of $7,000. Prepare depreciation schedules for all five years under both the straight-line and double-declining balance methods.

Straight Line Method

year	depreciation expense	Accumulated depreciation	Net Book Value
1
2
3
4
5

Double- Declining Balance Method

year	depreciation expense	Accumulated depreciation	Net Book Value
1
2
3
4
5

Calculate the gain or loss if the company uses the straight-line method and sells the asset for $47,000 at the beginning of year 3, and record the entry. (HINT: Use NBV at the end of Year 2!)

Calculate the gain or loss if the company uses the double-declining-balance method and sells the asset for $47,000 at the beginning of year 3 and record the entry. (HINT: Use NBV at the end of Year 2!)