Question
In: Accounting
Lone Star Sales & Service acquired a new machine that cost $84,000 in early 2016. The...
Lone Star Sales & Service acquired a new machine that cost
$84,000 in early 2016. The machine is expected to have a five-year
useful life and is estimated to have a salvage value of $14,000 at
the end of its life. (Round your final answers to the nearest
dollar.)
(a.) Using the straight-line depreciation method, calculate the
depreciation expense to be recognized in the second year of the
machine's life and calculate the accumulated depreciation after the
third year of the machine's life.
(b.) Using the double-declining-balance depreciation method,
calculate the depreciation expense for the third year of the
machine's life and the net book value of the machine at this point
in time.
Solutions
Expert Solution
note : in double declining balance method the depreciation is charged on the beginning book value of the assets
straight line depreciation is charged to the asset is same for all years or depreciation charged is fixed
ekkarill92 answered 5 months agoRelated Solutions
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