Problem #2: Depreciation Methods (SHOW YOUR WORK BY MAKING PROPER TABLE)

CALCULATE ALL STEPS! (BEGINNING BOOK VALUE, DEPRICIATION EXPENSE, ACCUMULATE D.E and BOOK VALUE)

Numo Company purchased a new machine on March 1, 2020, at a cost of $145,000. Rate is 40%.The company estimated that the machine will have a salvage value of $25,000.The machine is expected to be used for 20,000 working hours during its 5-year life.

Instructions Compute the depreciation expense under the following methods for the year indicated.

(a) Straight-line for 5 years

(b) Declining-balance using double the straight-line rate for 5 years.