Cosby Company purchased a new plant asset on April 1, 2015, at a cost of €774,000. It was estimated to have a service life of 20 years and a residual value of €60,000. Cosby’s accounting period is the calendar year.

Instructions

(a) Compute the depreciation for this asset for 2015 and 2016 using the sum-of-the-years’-digits method.

(b) Compute the depreciation for this asset for 2015 and 2016 using the double-declining-balance method.