A machine costing $40,000 was purchased on January 1, 2017. It has an estimated useful life of 5 years and a salvage value of $5,000.
Required:
1. Calculate depreciation expense for 2017 and 2018 using (a)straight-line rate, and (b)double-declining-balance method.
2. Determine the book value of the machine at December 31, 2018 under the (a)straight-line method and (b)double-declining-balance method.

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The Answer of A machine costing $40,000 was purchased on January 1, 2017. It has an estimated useful life of 5 years and a salvage value of $5,000.
Required:
1. Calculate depreciation expense for 2017 and 2018 using (a)straight-line rate, and (b)double-declining-balance method.
2. Determine the book value of the machine at December 31, 2018 under the (a)straight-line method and (b)double-declining-balance method.

A Machine Costing $40,000 Was Purchased on January 1, 2017