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Question: Hartford Hospital bought a new x-ray machine at the beginning of the year at a cost of $34,500. T...

Hartford Hospital bought a new x-ray machine at the beginning of the year at a cost of $34,500. The equipment’s estimated useful life is 4 years and the residual value is $2,500.

a.)   Use the Double Declining Balance depreciation method to compute the Depreciation Expense andBook Value for this new x-ray machine for each of the four years of its useful life (your answer must include 8 amounts and the calculations to support them).

Year	Computation	Depreciation Expense	Accumulated Depreciation	Book Value
1
2
3
4

b.) Using your answer to the Double Declining Balance Method in part a.) above, calculate the Gain or Loss that Hartford Hospital would report on its income statement if it sold the x-ray machine at the end of the third year for $ 5,300.  

Gain or Loss on sale of equipment based on Double Declining Balance Method:

Answer 1