On January 4, 20X1, Wilson Company purchased new equipment for $310,000 that had a useful life of four years and a salvage value of $40,000.

INSTRUCTIONS
Prepare a schedule showing the annual depreciation and end-of-year accumulated depreciation for the first three years of the asset’s life under (1) the straight-line method, (2) the sum-of-the-years’- digits method, and (3) the double-declining-balance method.

Analyze: If the sum-of-the-years’-digits method is used to compute depreciation, what would be the book value of the asset at the end of 20X2?