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Problem 6-26 Effect of straight-line versus double-declining-balance depreciation on the recognition of expense and gains or losses LO 6-2, 6-3, 6-5 Becker Office Service purchased

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Problem 6-26 Effect of straight-line versus double-declining-balance depreciation on the recognition of expense and gains or losses LO 6-2, 6-3, 6-5 Becker Office Service purchased a new computer system on January 1, 2018, for $35,800. It is expected to have a five- year useful life and a $3,700 salvage value. Becker Office Service expects to use the computer system more extensively in the early years of its life. b. Calculate the depreciation expense for each of the five years, assuming the use of double-declining-balance depreciation. (Enter all amounts as positive values. Do not round intermediate calculations. Round "SL rate" answers to 2 decimal places. Round your answers to the nearest dollar amount.) Year Accumulated Depreciation Cost Beginning Annual (2 * SL Rate) of Period Depreciation $ 35,800 $ 0 0.40 $ 14,320 $ 14,320 $ 14,320 0.40 $ 8,592 0.40 1 2 3 4 5 d. Assume that Becker Office Service sold the computer system the of the fourth year 0,00 Compute the amount of gain or loss using each depreciation method. (Negative amounts should be indicated with a minus sign. Do not round intermediate calculations. Round the final answers to nearest dollar amount.) Amount Effect Straight-Line Double-Declining-Balance

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