Equipment acquired on October 1, 2021 at a cost of $ 540,000 has an estimated useful life of 10 years. The residual value is estimated to be $ 55,000 at the end of the equipment's useful life. The company has a December 31 year end.
Instructions
Calculate the depreciation expense for December 31, 2021 and 2022 using:
a) the straight-line method.
b) the double diminishing-balance method.

Question

Quizplus · Accepted Answer

The Answer of Equipment acquired on October 1, 2021 at a cost of $ 540,000 has an estimated useful life of 10 years. The residual value is estimated to be $ 55,000 at the end of the equipment's useful life. The company has a December 31 year end.
Instructions
Calculate the depreciation expense for December 31, 2021 and 2022 using:
a) the straight-line method.
b) the double diminishing-balance method.

Equipment Acquired on October 1, 2021 at a Cost of