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Sagot :
Answer:
$13,500
$24,000
$30,000
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($120,000 - $12,000) / 8 = $13,500
the depreciation expense each year would be $13500
b. Sum-of-the-year digits = (remaining useful life / sum of the years ) x (Cost of asset - Salvage value)
Sum of the years = 1 +2 +3 +4 + 5 + 6 + 7 + 8 = 36
Remaining useful life = 8
(8/36) x ($120,000 - $12,000) = $24,000
c. Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2/8 = 0.25
0.25 x $120,000 = $30,000
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