Partial-Year Depreciation

Equipment acquired at a cost of $73,000 has an estimated residual value of $4,000 and an estimated useful life of 10 years. It was placed into service on October 1 of the current fiscal year, which ends on December 31.

a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method.

year 1.

year 2.

b. Determine the depreciation for the current fiscal year and for the following fiscal year by the double-declining-balance method.

Year 1.

Year 2.