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Sagot :
The depreciation expenses for the five years using the two depreciation methods are as follows:
Year Depreciation Expenses
Straight-Line Double-Declining
Method Method
2012 $124,000 $272,000
2013 124,000 163,200
2014 124,000 97,920
2015 124,000 58,752
2016 124,000 28,128
Data and Calculations:
Cost of Equipment = $680,000
Estimated Scrap value = $60,000
Estimated useful life = 5 years
Equipment purchase date = January 1, 2012
Depreciable amount = $620,000 ($680,000 - $60,000)
Straight-line Depreciation method:
Depreciation expense for each of the five years = $124,000 ($620,000/5)
Double-declining-balance method:
Depreciation rate per year = 40% (100/5 x 2)
Year Depreciation Reduced
Expense Balance
2012 $272,000 ($680,000 x 40%) $408,000 ($680,000 - $272,000)
2013 163,200 ($408,000 x 40%) 244,800 ($408,000 - $163,200)
2014 97,920 ($24,800 x 40%) 146,880 ($244,800 - $97,920)
2015 58,752 ($146,880 x 40%) 88,128 ($146,880 - $58,752)
2016 28,128 ($88,128 - $60,000) 60,000 ($88,128 - $28,128)
Learn more: https://brainly.com/question/19091134
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