Question
Trubisky Corporation acquired a machine on January 1, 20X1, for $3 million and decided to depreciate it over eight years using the double-declining method. The
Trubisky Corporation acquired a machine on January 1, 20X1, for $3 million and decided to depreciate it over eight years using the double-declining method. The depreciation rate each year, as a percentage of the original cost, was as follows:
Year | Depreciation Percentage | ||||||||
20X1 | 20.00 | ||||||||
20X2 | 16.00 | ||||||||
20X3 | 12.80 | ||||||||
20X4 | 10.24 | ||||||||
20X5 | 10.24 | ||||||||
20X6 | 10.24 | ||||||||
20X7 | 10.24 | ||||||||
20X8 | 10.24 | ||||||||
On January 1, 20X3, it became clear that the machine would not be used for the entire eight-year period, but rather would be retired at the end of 20X6 and that it would have no salvage value at that time. In addition, Trubisky decided to switch to the straight-line depreciation method.
Required:
What amounts of depreciation expense does Trubisky record in each year from 20X1 through 20X8? (Enter answers in dollars.)
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