Pincer Company uses the declining balance depreciation method. It buys a machine for $105,600 that has an unknown salvage value and applies a 60% rate. The machine stays in service for 3 full years and is sold for $12,560 on the first day of year 4. Round all answers to the nearest dollar (no cents).

 
Required 1: What depreciation expense will Pincer record in year 2? $ 

Required 2: What depreciation expense will Pincer record in year 3? $ 

Required 3: What accumulated depreciation will Pincer Co report at the end of year 2? $ 

Required 4: What accumulated depreciation will Pincer Co report at the end of year 3? $ 

Required 5:  What is the net book value of the machine that Pincer Co reports at the end of year 2? $ 

Required 6:  What is the net book value of the machine that Pincer Co reports at the end of year 3 provided the selling price is already known? 

Answer rating: 100% (QA)

1 Calculate the depreciation expense for year 2 as follows Year 1 Book Value at Beginning of Year 1 ... View the full answer