Given:

Texas, Inc. acquired a piece of equipment, an arc reactor, for $500,000 on January 1, 2021

The salvage value for the piece of equipment is $35,000

The estimated useful life of the equipment is seven years.

Required for for the set of facts given above: Compute depreciation expense, accumulated depreciation,

and net book value using the double-declining balance method of depreciation at 12/31/2022 and 12/31/2024.

For the year ended 12/31/22 For the year ended 12/31/24 Depreciation expense As of 12/31/22 As of 12/31/24 Accumulated depreciation Net book value