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Required information

CP$9-1($Algo$)$ Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods

$[$LO $9-2,$ LO $9-3]$

$[$The following information applies to the questions displayed below.$]$

At the beginning of the year,

Soldano.com bought machinery, shelving, and a forklift. The machinery initially cost $$32,000$

but had to be overhauled $($at a cost of $$2,480)$ before it could be installed $($at a cost of $$1,240)$ and finally put into use. The

machinery's total life was estimated as $40,000$ hours, with an estimated residual value of $$1,000.$ The machinery was

actually used $5,000$ hours in year $1$ and $7,000$ hours in year $2.$ Repair costs were $$510$ in each year.

The shelving cost $$10,100$ and was expected to last $5$ years, with a residual value of $$760.$ The forklift cost $$18,000$ and

was expected to last six years, with a residual value of $$2,320.$

CP$9-1($Algo$)$ Part $5$

Compute double$-$declining$-$balance depreciation expense for years $1$ and $2$ for the forklift. TIP: Remember that the formula for

double$-$declining$-$balance uses cost minus accumulated depreciation $($not residual value$).$