Straight-Line, Declining-Balance, Sum-Of-The-Years'-Digits, and MACRS Methods

A machine is purchased January 1 at a cost of $68,300. It is expected to serve for eight years and have a salvage value of $2,300.

Required:

1. Prepare a schedule showing depreciation for each of the eight years and the book value at the end of each year using the following methods:

a. Straight-line

Straight-Line Method
Year	Annual Depreciation	Ending Book Value
1	$fill in the blank 54102307dfa3ffd_1	$fill in the blank 54102307dfa3ffd_2
2	fill in the blank 54102307dfa3ffd_3	fill in the blank 54102307dfa3ffd_4
3	fill in the blank 54102307dfa3ffd_5	fill in the blank 54102307dfa3ffd_6
4	fill in the blank 54102307dfa3ffd_7	fill in the blank 54102307dfa3ffd_8
5	fill in the blank 54102307dfa3ffd_9	fill in the blank 54102307dfa3ffd_10
6	fill in the blank 54102307dfa3ffd_11	fill in the blank 54102307dfa3ffd_12
7	fill in the blank 54102307dfa3ffd_13	fill in the blank 54102307dfa3ffd_14
8	fill in the blank 54102307dfa3ffd_15	fill in the blank 54102307dfa3ffd_16

b. Double-declining-balance (round to two decimal places)

Double-Declining-Balance Method
Year	Annual Depreciation	Ending Book Value
1	$fill in the blank 5ea96806e015038_1	$fill in the blank 5ea96806e015038_2
2	fill in the blank 5ea96806e015038_3	fill in the blank 5ea96806e015038_4
3	fill in the blank 5ea96806e015038_5	fill in the blank 5ea96806e015038_6
4	fill in the blank 5ea96806e015038_7	fill in the blank 5ea96806e015038_8
5	fill in the blank 5ea96806e015038_9	fill in the blank 5ea96806e015038_10
6	fill in the blank 5ea96806e015038_11	fill in the blank 5ea96806e015038_12
7	fill in the blank 5ea96806e015038_13	fill in the blank 5ea96806e015038_14
8	fill in the blank 5ea96806e015038_15	fill in the blank 5ea96806e015038_16

c. Sum-of-the-years'-digits (round to two decimal places)

Sum-Of-The-Years'-Digits Method
Year	Annual Depreciation	Ending Book Value
1	$fill in the blank 0d08d0f9a020042_1	$fill in the blank 0d08d0f9a020042_2
2	fill in the blank 0d08d0f9a020042_3	fill in the blank 0d08d0f9a020042_4
3	fill in the blank 0d08d0f9a020042_5	fill in the blank 0d08d0f9a020042_6
4	fill in the blank 0d08d0f9a020042_7	fill in the blank 0d08d0f9a020042_8
5	fill in the blank 0d08d0f9a020042_9	fill in the blank 0d08d0f9a020042_10
6	fill in the blank 0d08d0f9a020042_11	fill in the blank 0d08d0f9a020042_12
7	fill in the blank 0d08d0f9a020042_13	fill in the blank 0d08d0f9a020042_14
8	fill in the blank 0d08d0f9a020042_15	fill in the blank 0d08d0f9a020042_16

2. Assuming a seven-year class of property, compute MACRS depreciation expense for each year of the assets life.

MACRS method
Year	Original Cost	MACRS Depreciation Rates 7-Year Class of Property	Depreciation Expense
1	$68,300	14.29%	$fill in the blank b608af0bdfa7fda_1
2	68,300	24.49%	fill in the blank b608af0bdfa7fda_2
3	68,300	17.49%	fill in the blank b608af0bdfa7fda_3
4	68,300	12.49%	fill in the blank b608af0bdfa7fda_4
5	68,300	8.93%	fill in the blank b608af0bdfa7fda_5
6	68,300	8.92%	fill in the blank b608af0bdfa7fda_6
7	68,300	8.93%	fill in the blank b608af0bdfa7fda_7
8	68,300	4.46%	fill in the blank b608af0bdfa7fda_8
Total			$fill in the blank b608af0bdfa7fda_9