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On January 4, 2019, Columbus Company purchased new equipment for $621,000 that had a useful life of four years and a salvage value of $41,000.

On January 4, 2019, Columbus Company purchased new equipment for $621,000 that had a useful life of four years and a salvage value of $41,000. Required: Prepare a schedule showing the annual depreciation and end-of-year accumulated depreciation for the first three years of the assets life under the straight-line method, the sum-of-the-years-digits method, and the double-declining-balance method. Analyze: If the double-declining balance method is used to compute depreciation, what would be the book value of the asset at the end of 2020?

STRAIGHT LINE METHOD
Year Acquisition Cost Salvage Value Useful Life Annual Depreciation Accumulated Depreciation
2019 years
2020 years
2021 years

SUM-OF-THE-YEARS'-DIGITS METHOD
Year Fraction Cost Less Salvage Annual Depreciation Accumulated Depreciation
2019
2020
2021

DOUBLE DECLINING BALANCE METHOD
Year Beginning Book Value Rate Annual Depreciation Accumulated Depreciation
2019
2020
2021

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