In January 2013, Rogers Co. purchased a machine that cost $75,000. The equipment is estimated to have a 5-year life and a salvage value of $15,000.
Required:
a) Compute the amount of depreciation expense for 2013 and 2014 using the double declining balance method.
b) Compute the amount of MACRS depreciation for the above equipment for 2013 assuming the property is 5 year property and the MACRS percentage is 20%.

Question

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The Answer of In January 2013, Rogers Co. purchased a machine that cost $75,000. The equipment is estimated to have a 5-year life and a salvage value of $15,000.
Required:
a) Compute the amount of depreciation expense for 2013 and 2014 using the double declining balance method.
b) Compute the amount of MACRS depreciation for the above equipment for 2013 assuming the property is 5 year property and the MACRS percentage is 20%.