Pedro Company has $37,000 of machinery being depreciated over 5 years. The estimated residual value is $8,400. After taking 2 years depreciation, Pedro realizes the equipment is clearly going to last another 4 years and the estimated residual value remains unchanged.

QUESTIONS:

Required 1: What depreciation expense will Pedro record in year 2 when using the straight line method? $

Required 2: What depreciation expense will Pedro record in year 3 when using the straight line method? $

Required 3: What depreciation expense will Pedro record in year 2 when using the declining balance method? $

Required 4: What depreciation expense will Pedro record in year 3 when using the declining balance method? $

Required 5: What depreciation expense will Pedro record in year 2 when using the double declining balance method? $

Required 6: What depreciation expense will Pedro record in year 3 when using the double declining balance method? $