Mayr Inc purchased a machine for its factory on June 6, 2016 for $110,000 The machine is expected to have an estimated useful life of ten years with a residual value of $10,000 Assume the company uses the year rule to calculate depreciation expense in the year of acquisition and disposal Required Compute the depreciation for 2016 and 2017 using 1 The straight line method 2 The double declining balance method

Question: Mayr Inc. purchased a machine for its factory on June 6, 2016 for $110,000. The machine is expected to have an estimated useful life of

Mayr Inc. purchased a machine for its factory on June 6, 2016 for $110,000. The machine is expected to have an estimated useful life of ten years with a residual value of $10,000. Assume the company uses the ½ year rule to calculate depreciation expense in the year of acquisition and disposal.
Required: Compute the depreciation for 2016 and 2017 using
1. The straight-line method
2. The double-declining balance method.

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