$On$ July $1,2025,$ Martinez Company purchased for $$4,680,000$ snow$-$making equipment having $an$ estimated useful life $of5$ years with

$an$ estimated salvage value $of$ $$195,000.$ Depreciation $is$ taken for the portion $of$ the year the asset $is$ used.

$(a)$

Complete the form below $by$ determining the depreciation expense and year$-$end book values for $2025$ and $2026$ using:

Sum$-of-$the$-$years'$-$digits method.

Double$-$declining balance method.

$2025$

$2026$

Sum$-of-$the$-$Years'$-$Digits Method

Equipment

Less: Accumulated Depreciation

Year$-$End Book Value

Depreciation Expense for the Year

Double$-$Declining Balance Method

Equipment

Less: Accumulated Depreciation

Year$-$End Book Value

Depreciation Expense for the Year

$$4,680,000$

$(b1)$

Assume the company had used straight$-$line depreciation during $2025$ and $2026.In2027,$ the company determined that the

equipment would $be$ useful $to$ the company for only one more year beyond $2027.$ The salvage value $is$ estimated $at$ $$260,000.$

Compute the amount $of$ depreciation expense for the $2027$ income statement.

Depreciation expense

$(b2)$

Assume the company had used straight$-$line depreciation during $2025$ and $2026.$ During $2027,$ the company determined that the

equipment would $be$ useful $to$ the company for only one more year beyond $2027.$ Salvage value $is$ estimated $at$ $$260,000.$

What $is$ the depreciation base $of$ this asset $at$ the end $of2026?$

$$4,680,000$