Dancy corporation purchased machinery on January 1, 2025, at a cost of $274,000. The estimated useful life of machinery is 4 years, with an estimated salvage value at the end of that period of $32,400. The company is considering different depreciation methods that could be used for financial purposes.

Prepare separate schedules for the machinery using the straight-line method, and the declining-balance method using the straight-line rate.

Straight-line depreciation

COMPUTATION END OF YEAR

• 2025-Depreciation Cost-Depreciation Rate-Annual depreciation expense-Accumulated depreciation-Book value
• 2026- Depreciation Cost-Depreciation Rate-Annual depreciation expense-Accumulated depreciation-Book value
• 2027- Depreciation Cost-Depreciation Rate-Annual depreciation expense-Accumulated depreciation-Book value
• 2028- Depreciation Cost-Depreciation Rate-Annual depreciation expense-Accumulated depreciation-Book value

Double-Declining-Balance Depreciation

• 2025-Book value Beginning of year- Depreciation Rate-Annual depreciation expense-Accumulated depreciation-Book value
• 2026- Depreciation Rate-Annual depreciation expense-Accumulated depreciation-Book value
• 2027- Depreciation Rate-Annual depreciation expense-Accumulated depreciation-Book value
• 2028- Depreciation Rate-Annual depreciation expense-Accumulated depreciation-Book value