Objective: To calculate depreciation by two different methods and prepare depreciation schedules At the beginning of the current year, Griffith company acquired an item of equipment for $280,000. The equipment had a life expectancy of five years and an estimated salvage value of $40,000. Directions: Prepare depreciation schedules for the life of this asset using (a) the straight-line method; (b) the double declining-balance method.

Straight-line method Depreciation Accumulated Book Value Expense Depreciation End of Year Year 4 Double declining-balance method Depreciation Accumulated Book Value Expense Depreciation End of Year Year 4 Check Figure