Exercise 11-3

Bramble Company purchased a new plant asset on April 1, 2017, at a cost of $774,990. It was estimated to have a service life of 20 years and a salvage value of $65,400. Brambles accounting period is the calendar year.

Part A: Compute the depreciation for this asset for 2017 and 2018 using the sum-of-the-years'-digits method.

Part B: Compute the depreciation for this asset for 2017 and 2018 using the double-declining-balance method.