Question

On January 1, 2010, Ocean’s Front Restaurant purchased new meat slicing equipment for $37,500. Ocean’s Front also paid $1,000 for shipping and $3,500 to train employees to use the new equipment. The equipment is expected to have a useful life of five years and a salvage value of $2,000.
1. Compute the depreciation expense for the years 2010–2012, using the straight-line method. (December 31 is the fiscal year end.)
2. Compute the depreciation expense for the years 2010–2012, using the double-declining balance method. (Round your answers to the nearest dollar.)
3. What is the book value of the equipment at the end of 2010 under each method?



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  • CreatedSeptember 01, 2014
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