Weaver Motors purchased a machine that will help diagnose problems with engines. The machine cost $300,000 on January 3, 2017 and had a residual value of $30,000, with a useful life of 6 years.
Required:
Calculate the depreciation expense and book value as of December 31, 2017 under both the straight-line and double-declining-balance methods.

Question

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The Answer of Weaver Motors purchased a machine that will help diagnose problems with engines. The machine cost $300,000 on January 3, 2017 and had a residual value of $30,000, with a useful life of 6 years.
Required:
Calculate the depreciation expense and book value as of December 31, 2017 under both the straight-line and double-declining-balance methods.

Weaver Motors Purchased a Machine That Will Help Diagnose Problems