On January 1, 2019, Sport Company purchased for $3,600,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $150,000.

Instructions

(a) Complete the form below by determining the depreciation expense and year-end book values for 2019 and 2020 using the

1. sum-of-the-years'-digits method.

2. double-declining balance method. Sum-of-the-Years'-Digits Method

2019 2020 Equipment $3,600,000 $3,600,000 Less: Accumulated Depreciation 1,150,000 2,070,000 Year-End Book Value 2,450,000 150,000 Depreciation Expense for the Year 1,150,000 920,000 Double-Declining Balance Method Equipment $3,600,000 $3,600,000 Less: Accumulated Depreciation 1,440,000 2,304,000 Year-End Book Value 2,160,000 1,296,000 Depreciation Expense for the Year 1,440,000 864,000

(b) Assume the company had used straight-line depreciation during 2019 and 2020. During 2021, the company determined that the equipment would be useful to the company for only one more year beyond 2021. Salvage value is estimated at $200,000. ***

(1) Compute the amount of depreciation expense for the 2021 income statement. ***

(2) What is the depreciation base of this asset? ***

I completed Part A and need help with Part B + numbers 1 & 2

Thanks!