Nickle Company purchased three identical assets for $17,000 on January 2, 2016. Each asset has an expected residual value of $1,000. The depreciation expense for 2016 and 2017 is shown below for three assets:

YearAsset AAsset BAsset C2016$ 4,000$ 6,400$6,37520174,0004,8003,984Required:

1. Which depreciation method is the company using in each example?
2. Asset A:Straight-line
4. Asset B:Sum-of-the-years'-digits
6. Asset C:150%-declining balance
8. Compute the depreciation expense for 2018 under each method. If required, round to the nearest dollar.
9. Asset A:$Asset B:$Asset C:$Compute the depreciation expense for 2019 under each method. If required, round to the nearest dollar.
10. Asset A:$Asset B:$Asset C:$

Sorter Company purchased equipment for $200,000 on January 2, 2016. The equipment has an estimated service life of 8 years and an estimated residual value of $20,000.

Required:

Compute the depreciation expense for 2016 under each of the following methods:

1. straight-line: $
2. sum-of-the-years'-digits: $
3. double-declining-balance: $
4. Depreciation causes the book value of the assets to
6. each period. When an accelerated depreciation method is used, the rate of return
8. each period.