Pristine Carpet Cleaner bought a new steamer for $137,000 cash at the beginning of 2010. The estimated

Question:

Pristine Carpet Cleaner bought a new steamer for $137,000 cash at the beginning of 2010. The estimated useful life is eight years and the estimated salvage value is $2,000. The estimated productivity is 225,000 hours. Hours actually used were 30,000 in 2010 and 28,125 in 2011. Calculate the depreciation expense for 2010 and 2011 under each of the three methods given. (Round your answers to the nearest dollar.)

1. Straight-line method

2. Activity method

3. Double-declining balance method

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...