Question 3

On January 1, 2010, Powell Company purchased a building and machinery that have the following useful lives, salvage value, and costs. The building has been depreciated under the straight-line method through 2014. In 2015, the company decided to switch to the double-declining balance method of depreciation for the building. Powell also decided to change the total useful life of the machinery to 8 years, with a salvage value of $41,500 at the end of that time. The machinery is depreciated using the straight-line method