A machine costing $40,000 was purchased on January 1, 2012. It has an estimated useful life of 5 years and a salvage value of $5,000.
Required:
1. Calculate depreciation expense for 2012 and 2013 using (a) straight-line rate, and (b) double-declining balance method.
2. Determine the book value of the machine at the end of 2013 under the (a) straight-line method and (b) double-declining balance method.

Question

Quizplus · Accepted Answer

The Answer of A machine costing $40,000 was purchased on January 1, 2012. It has an estimated useful life of 5 years and a salvage value of $5,000.
Required:
1. Calculate depreciation expense for 2012 and 2013 using (a) straight-line rate, and (b) double-declining balance method.
2. Determine the book value of the machine at the end of 2013 under the (a) straight-line method and (b) double-declining balance method.

A Machine Costing $40,000 Was Purchased on January 1, 2012