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On July 1, 2025, Whispering Winds Company purchased for $6,300,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage
On July 1, 2025, Whispering Winds Company purchased for $6,300,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $262,500. 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: Sum-of-the-years'-digits method. 1. 2. Double-declining balance method. 2025 2026 Sum-of-the-Years-Digits Method Equipment $6,300,000 $6,300,000 Less: Accumulated Depreciation $ $ Year-End Book Value $ Depreciation Expense for the Year $ Double-Declining Balance Method Equipment Less: Accumulated Depreciation Year-End Book Value Depreciation Expense for the Year $ $ $6,300,000 $ $6,300,000
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