# Depreciation by Two Methods A

Depreciation by Two Methods

A computer system acquired on January 1 at a cost of \$153,000 has an estimated useful life of ten years. Assuming that it will have no residual value.

a.  Determine the depreciation for each of the first two years by the straight-line method.

 First Year Second Year \$fill in the blank 1 \$fill in the blank 2

b.  Determine the depreciation for each of the first two years by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your final answers to the nearest dollar.

 First Year Second Year \$fill in the blank 3 \$fill in the blank 4

# Depreciation by Two Methods A

Depreciation by Two Methods

A storage tank acquired at the beginning of the fiscal year at a cost of \$90,000 has an estimated residual value of \$5,000 and an estimated useful life of 10 years.

a.  Determine the amount of annual depreciation by the straight-line method.
\$fill in the blank 1

b.  Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar.

 Depreciation Year 1 \$fill in the blank 2 Year 2 \$fill in the blank 3

# Depreciation by Two Methods A

Depreciation by Two Methods

A Kubota tractor acquired on January 8 at a cost of \$162,000 has an estimated useful life of ten years. Assuming that it will have no residual value.

a.  Determine the depreciation for each of the first two years by the straight-line method.

 First Year Second Year

b.  Determine the depreciation for each of the first two years by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your final answer to the nearest dollar.

 First Year Second Year

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