On January 1, 2006, the Emming Corporation purchased some machinery. The machinery has an estimated life of

Question:

On January 1, 2006, the Emming Corporation purchased some machinery. The machinery has an estimated life of 10 years and an estimated residual value of $5,000. The depreciation on this machinery was $20,000 in 2008.

Required

Compute the acquisition cost of the equipment under the following depreciation methods:

1. Straight-line

2. Sum-of-the-years’-digits

3. Double-declining-balance

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...