Miracle Inc acquired a machine that cost 50 000 early in
Miracle Inc. acquired a machine that cost $50,000 early in 1999. The machine is expected to last for 10 years, and its estimated salvage value at the end of its life is $5,000(6 points).
1. Using straight-line depreciation, calculate the depreciation expense to be recognized in the second year of the machine’s life and calculate B/V after the second year of the machine’s life.
2. Using double-declining (200%) depreciation method, calculate the depreciation expense for the second year of the machine’s life and B/V after the second year of the machine’s life.
3. Using sum-of-the-years-digit depreciation, calculate the depreciation expense to be recognized in the second year of the machine’s life and B/V after the second year of the machine’s life.

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