Porter, Inc , acquired a machine that cost $360,000 on October 1, 2013 The machine is expected to have a four year useful life and an estimated salvage value of $40,000 at the end of its life Porter, Inc , uses the calendar year for financial reporting Depreciation expense for one fourth of a year ...

a and b Estimated useful life 4 years Cost of machine 360000 Estimated s ...

Porter, Inc., acquired a machine that cost $360,000 on October 1, 2013. The machine is expected to

Question:

Porter, Inc., acquired a machine that cost $360,000 on October 1, 2013. The machine is expected to have a four-year useful life and an estimated of $40,000 at the end of its life. Porter, Inc., uses the calendar year for financial reporting. Depreciation expense for one-fourth of a year was recorded in 2013.

Required:
a. Using the straight-line depreciation method, calculate the depreciation expense to be recognized in the income statement for the year ended December 31, 2015, and the balance of the Accumulated Depreciation account as of December 31, 2015.
b. Using the double-declining-balance depreciation method, calculate the depreciation expense for the year ended December 31, 2015, and the net book value of the machine at that date.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...