PRACTICE PROBLEM: New lithographic equipment, acquired at a cost of $800,000 on January 1, 2020 the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $90,000. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. Determine the annual depreciation expense for each of the first 3 years of use (THROUGH 2022), the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method. CHECK POINTS! Book Value at End of Year 2: Straight-Line: $516,000 Double Declining Balance. $288,000

Napu Mayer Electric eln... WP WileysPLUS TCIAS ASSISTITICTIL.UULA iew ZOOM + PRACTICE PROBLEM: New lithographic equipment, acquired at a cost of $800,000 on January 1, 2020 the beginning of a fiscal year, an estimated useful life of five years and an estimated residual value of $90,000. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. Determine the annual depreciation expense for each of the first 3 years of use (THROUGH 2022), the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method. Straight-Line Method Depreciation Expense Accumulated Depreciation Asset Book Value Date Asset Cost Double Declining Balance Asset Book Value (Previous Year) Depreciation Expense Accumulated Depreciation New Asset Book Value Date Asset Cost DDB Rate CHECK POINTSI Book Value at End of Year 2: Straight-Line: $516,000 Double Declining Balance. $288,0