Q1. Companies changed depreciation methods. Q1a. On Jan 1, 2016, Ayre Co. bought equipment for $240,000. Its estimated useful life was six years and residual value $24,000. At that time Ayre used straight-line depreciation. In Jan 2019, the estimate of useful life was revised up to a total life of eight years, and the expected residual value was changed to $14,000. In addition, Ayre changed to the sum-of-the-years-digits method of depreciation. Determine depreciation expense for 2019. [1 mark]

You must show plausible calculations to get credit

Answer, depreciation expense for 2019 would be: $

Q1b. On Jan 1, 2014, Nobel Co. bought machinery for $500,000. It had an estimated life of ten years and no residual value. Nobel initially used the straight-line method of depreciation. However, in Jan 2019, the company changed to the double-declining balance method of depreciation. Determine the depreciation expense for 2019. [1 mark]

You must show plausible calculations to get credit

Answer, the machines depreciation expense for 2019 would be: $