Calculating Depreciation Expense for the First Two Years

Partial Depreciation for Year 1

Full Year Deprecation for Year 2

A machine which cost $300,000 is acquired on October 1, 2020. Its estimated

salvage value is $30,000. The Useful Life/Recovery Period for this machine is 10 years, OR 270,000 Units of Production.

Required: Calculate the Depreciation Expense for 2020, Year 1, AND calculate the Depreciation Expense for 2021, Year 2, using the following Methods:

(Show each step of your work for partial credit)

(You can use the template below if you want Optional)

Straight-Line Depreciation

First: Determine the amount of Depreciable Cost

Cost Less Salvage Value = Depreciable Cost

$ $ $

Second: Determine the Annual Depreciation Expense

Depreciable Cost //// Useful Life in Years = Annual Depreciation

$ = $