Equipment acquired on October 1, 2014, 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, 2014 and 2015 using:
a. the straight-line method.
b. the double diminishing-balance method.

Question

Quizplus · Accepted Answer

The Answer of Equipment acquired on October 1, 2014, 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, 2014 and 2015 using:
a. the straight-line method.
b. the double diminishing-balance method.

Equipment Acquired on October 1, 2014, at a Cost of $540,000