On January 1, Re purchased a new commercial convection oven at a cost of $33,000 with an estimated life of 5 years and a salvage value of $3,000. Charlys Chicken House depreciated the oven using the double-declining-balance method.

A. Calculate depreciation expense for each year of the convection ovens useful life. (Hint: If needed, round to whole dollar amounts.)

B. After using the convection oven for 3 years, Charlys Chicken House determined the package was anticipated to generate future revenues and cash flows for only one more year and was worth only $5,000. How should Charlys Chicken House account for this event?