A company's property records revealed the following information about its plant assets:Machine No.CostSalvage ValuePurchase DateEstimated LifeDepreciation Method1$82,000$8,0001/014 yearsStraight-line246,0003,6007/015 yearsDouble-declining-balanceCalculate the depreciation expense for each machine in Year 1 and Year 2 for the year ended December 31.Machine 1: Year 1________ Year 2 ________Machine 2: Year 1 ________ Year 2 ________
What will be an ideal response?
Machine 1:
Years 1 & 2: [($82,000 ? $8,000)/4] = $18,500
Machine 2:
Year 1: $46,000 × 40% * 6/12 = $9,200
Year 2: ($46,000 ? $9,200) * 40% = $14,720
* DDB depreciation rate = 1/5 * 2 = 40%
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