Depreciationby Two Methods

A Caterpillar tractor acquired on January 12 at a cost of $180,000 has an estimated useful life of 25 years. Assuming that it will have noresidual value.

a.Determine the depreciation for each of the first two years by thestraight-line method. Round your answer to the nearest cent if rounding is required.

Depreciation

First year

$

Second year

$

b.Determine the depreciation for each of the first two years by thedouble-declining-balance method. Round your answer to the nearest cent if rounding is required.

Depreciation

First year

$

Second year

$