On June 1, 2020, Nha Trang Company purchases $2,150,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $80,000.

Instructions

1.Journalize the entries for depreciation expenses for the Year 2020 and 2021, assuming the company uses straight-line depreciation.

2.Repeat part a, assuming the company uses the double-declining method.

3.At the beginning of 2022, the company determined that the equipment would still be useful to the company for the next 5 years, and salvage value is estimated at $50,000. Assuming the company still uses the straight-line method, compute the amount of depreciation expense for 2022.