Depreciation methods.
On July 1, 2014, Sport Company purchased for $2,880,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $120,000. Depreciation is taken for the portion of the year the asset is used.
Instructions

(a) Complete the form below by determining the depreciation expense and year-end book values for 2014 and 2015 using the
1. sum-of-the-years'-digits method."
2. double-declining balance method. (b) Assume the company had used straight-line depreciation during 2014 and 2015. During 2016, the company determined that the equipment would be useful to the company for only one more year beyond 2016. Salvage value is estimated at $160,000.(1) Compute the amount of depreciation expense for the 2016 income statement.(2) What is the depreciation base of this asset?"

Question

Depreciation methods.
On July 1, 2014, Sport Company purchased for $2,880,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $120,000. Depreciation is taken for the portion of the year the asset is used. 
Instructions

(a) Complete the form below by determining the depreciation expense and year-end book values for 2014 and 2015 using the
1. sum-of-the-years'-digits method."
2. double-declining balance method.  (b) Assume the company had used straight-line depreciation during 2014 and 2015. During 2016, the company determined that the equipment would be useful to the company for only one more year beyond 2016. Salvage value is estimated at $160,000.(1) Compute the amount of depreciation expense for the 2016 income statement.(2) What is the depreciation base of this asset?"

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The Answer of Depreciation methods.
On July 1, 2014, Sport Company purchased for $2,880,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $120,000. Depreciation is taken for the portion of the year the asset is used. 
Instructions

(a) Complete the form below by determining the depreciation expense and year-end book values for 2014 and 2015 using the
1. sum-of-the-years'-digits method."
2. double-declining balance method.  (b) Assume the company had used straight-line depreciation during 2014 and 2015. During 2016, the company determined that the equipment would be useful to the company for only one more year beyond 2016. Salvage value is estimated at $160,000.(1) Compute the amount of depreciation expense for the 2016 income statement.(2) What is the depreciation base of this asset?"

Depreciation Methods. On July 1, 2014, Sport Company Purchased for $2,880,000 Snow-Making