Reese Hardware purchased a new industrial size tool maker for $19,600. Shipping charges were $300 and installation amounted to $480. The tool maker is estimated to have a 5 year life and a residual value of $1,000. Reese elects to use the sum-of-the years' digits method.
A)What is the depreciation rate fraction for year 1?
B)What is the amount of depreciation for year 2?

Question

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The Answer of Reese Hardware purchased a new industrial size tool maker for $19,600. Shipping charges were $300 and installation amounted to $480. The tool maker is estimated to have a 5 year life and a residual value of $1,000. Reese elects to use the sum-of-the years' digits method.
A)What is the depreciation rate fraction for year 1?
B)What is the amount of depreciation for year 2?

Reese Hardware Purchased a New Industrial Size Tool Maker for $19,600