eBook Calculator Straight-Line, Dedining-Balance, Sum-Of-The-Years'-Digits, and MACRS Methods A machine is purchased January 1 at a cost of $59,000. It is expected to serve for eight years and have a salvage value of $3,000. Required: 1. Prepare a schedule showing depreciation for each year and the book value at the end of each year using the following methods a. Straight-line Straight-Line Method Year Annual Depreciation 1 $ 7,000 Ending Book Value $ 52,000 7.000 45.000 7,000 38.000 31,000 24,000 7,000 Check My Wor Cost - Salvage Value - Depreciable Cost Depreciable Cost/ Years of Life - Depreciation Expense Check my Work Email Instructor Save and MacBook Air Cost - Salvage Value = Depreciable Cost Depreciable Cost / Years of Life = Depreciation Expense b. Double-declining-balance (round to two decimal places) Double-Declining-Balance Method Year 1 Annual Depreciation $ 14,750 Ending Book Value $ 44,250 2 Feedback v Chock My Work Double means double the straight-line rate. Declining balance means that the rate is multiplied by This amount is declining each year. Refer to Figure 18-2 in the text. c. Sum-of-the-years'-digits (round to two decimal places) Check My Work All work saved. MacBook Air Sum-Of-The-Years'-Digits Method Year Annual Depreciation Ending Book Value 2. Assuming a seven-year class of property, compute MACRS depreciation expense for each year of the asset's life. If required, round your Depreciation Rates and Depreciation Expense answers to two decimal places. (Use Figure 18-3). MACRS method Depreciation Year MACRS Depreciation Rates 7-Year Class of Property Original Cost Expense Previous Next > Check My Work All work saved Email instructor Save and Exit Submit Assignment for Grading