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On July 1, 2025, Sarasota Company purchased for $5,760,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value
On July 1, 2025, Sarasota Company purchased for $5,760,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $240,000. Depreciation is taken for the portion of the year the asset is used. (a) Your answer has been saved. See score details after the due date. Complete the form below by determining the depreciation expense and year-end book values for 2025 and 2026 using: Sum-of-the-years'-digits method. 1. 2. Double-declining balance method. 2025 2026 Sum-of-the-Years'-Digits Method Equipment $5,760,000 $5,760,000 Less: Accumulated Depreciation $ 920000 $ 1288000 Year-End Book Value $ 4840000 4472000 Depreciation Expense for the Year $ 920000 Double-Declining Balance Method Equipment $5,760,000 Less: Accumulated Depreciation $ 1152000 4608000 A SA SA 1656000 $5,760,000 1843200 3916800 Year-End Book Value SA $ Depreciation Expense for the Year $ 1152000 $ SA 1843200
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