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On July 1, 2025, Pina Colada Company purchased for $5,220,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage
On July 1, 2025, Pina Colada Company purchased for $5,220,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $217,500. Depreciation is taken for the portion of the year the asset is used. (a) Complete the form below by determining the depreciation expense and year-end book values for 2025 and 2026 using: 1. Sum-of-the-years-digits method. 2. Double-declining balance method. Sum-of-the-Years-Digits Method Equipment Accumidated Deneciation 2025 $5.220.000 2026 $5,220.000
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