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On July 1, 2020, Flounder Company purchased for $4,140,000 snow-making equipment having an estimated useful life...

On July 1, 2020, Flounder Company purchased for $4,140,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $172,500. Depreciation is taken for the portion of the year the asset is used.

(a)

Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the
1. sum-of-the-years'-digits method.
2. double-declining balance method.
2020 2021
Sum-of-the-Years'-Digits Method
Equipment $4,140,000 $4,140,000
Less: Accumulated Depreciation $ $
Year-End Book Value
Depreciation Expense for the Year
Double-Declining Balance Method
Equipment $4,140,000 $4,140,000
Less: Accumulated Depreciation $ $
Year-End Book Value
Depreciation Expense for the Year

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ekkarill92 answered 2 years ago
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