IN-CLASS ACTIVITY #6 Izzo Shoe Co. operates a tennis shoe manufacturing facility in East Lansing. Below is a summary of their Property, Plant & Equipment: Land Item Manufacturing Facility Equipment Purchase Date 1/1 of Year 1 1/1 of Year 1 1/1 of Year 1 Purchase Price $300,000 $150,000 $75,000 Physical Useful Life Life 0 Years 40 Years 15 Years 0 Years 20 Years 10 Years Salvage Value $300,000 $40,000 $8,000 Answer the following questions: 1. Assume the Manufacturing Facility is depreciated using the straight-line depreciation method. What is the depreciation expense for year 1? 2. Assume the Equipment is depreciated using the double-declining balance depreciation method. Use Excel to create a depreciation schedule for the equipment.

IN-CLASS ACTIVITY \#6 Izzo Shoe Co. operates a tennis shoe manufacturing facility in East Lansing. Below is a summary of their Property. Plant \& Equinment. Answer the following questions: 1. Assume the Manufacturing Facility is depreciated using the straight-line depreciation method. What is the depreciation expense for year 1 ? 2. Assume the Equipment is depreciated using the double-declining balance depreciation method. Use Excel to create a depreciation schedule for the equipment