A copy machine acquired on May 1 with a cost of $2,545, estimated useful life of 3 years, and residual value of $445. Determine the depreciation for the first and second year by the straight-line method and the net book value at the end of the second year. (Circle Final Answers)

Straight Line Depreciation for Year 1:

Depreciation per year: ($ 2,545 - $ 445) / 3

=$ 700

Per Year 1st year depreciation = 700 / 12 * 8

= $466.67 = $467

Straight Line Depreciation for Year 2:

2nd year depreciation = 700 / 12 * 12

= $700

Net book value at the end of Year 2: