The Acme Chemical Company purchased $45,000 of research equipment, which it believes will have zero salvage value

Question:

The Acme Chemical Company purchased $45,000 of research equipment, which it believes will have zero salvage value at the end of its 5-year life. Compute the depreciation schedule for the equipment by each of the following methods:

(a) Straight line.

(b) Sum-of-years'-digits.

(d) Modified accelerated cost recovery system.

Depreciation
Depreciation is an important concept in accounting. By definition, depreciation is the wear and tear in the value of a noncurrent asset over its useful life. In simple words, depreciation is the cost of operating a noncurrent asset producing... Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...