Question
On January 1, Year 1, Topaz Industries purchased a new piece of equipment for specialized manufacturing at a cost of $400,00, inclusive of shipping
On January 1, Year 1, Topaz Industries purchased a new piece of equipment for specialized manufacturing at a cost of $400,00, inclusive of shipping and installation. At the time of purchase, the equipment had an estimated useful life of 8 years and an expected salvage value of $20,000 at the end of the 8 years. Topaz Industries is preparing for it annual audit. The controller has asked you (senior accountant) to calculate the double-declining balance depreciation for the external auditor's lead schedule. You need to provide these two items: A) What is the depreciation expense in year 3? (Show your work in the text field provided 10 pts) B) What is the carrying amount of the equipment at the end of year 2? (Show your work in the text field provided - 10 pts)
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