Question: Razor Sharp Company purchased tool sharpening equipment on July 1, 2008, for $48,600. The equipment was expected to have a useful life of three years,

Razor Sharp Company purchased tool sharpening equipment on July 1, 2008, for $48,600. The equipment was expected to have a useful life of three years, and a residual value of $3,000.

Instructions

Determine the amount of depreciation expense for the years ended December 31, 2008, 2009, 2010, and 2011, by

(a) The straight-line method and

(b) The double-declining-balance method.

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a Straightline method 2008 48600 30003 12 7600 2009 48600 30003 15200 20... View full answer

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