Zero Company acquired an asset on January 2, 2016, at a cost of $266,000. The asset's useful

Question:

Zero Company acquired an asset on January 2, 2016, at a cost of $266,000. The asset's useful life is four years and its salvage value is $76,000. Compute the depreciation expense for each of the first two years, using the straight-line method, the double-declining-balance method, and the sum-of-the- years'-digits method.

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...