Problem $-$ Depreciation Methods

A machine which cost $\backslash (\backslash$$ $600,000\backslash )$ is acquired on January $1,2017.$ Its estimated salvage value is $\backslash (\backslash$$ $75,000\backslash )$ and its expected life is eight years.

Instructions

Calculate depreciation expense and complete the following schedules for $2017$ and $2018$ for each of the following methods.

A$.$ Straight Line Depreciation

B$.$ Sum of the Years Digits

$\backslash$begin$\{$tabular$\}\{|$l$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$ Straight$-$Line $\}$ & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline Year & Depreciation Expense & Accumulated Depreciation & Book Value $\backslash \backslash$

$\backslash$hline $2017$ & $\backslash (\backslash$# $1\backslash )$ & $\backslash$#$2$ & $\backslash$#$3\backslash \backslash$

$\backslash$hline $2018$ & $\backslash (\backslash$# $4\backslash )$ & $\backslash$#$5$ & $\backslash (\backslash$# $6\backslash )\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$ Sum of Years Digits $\}$ & & $\backslash \backslash$

$\backslash$hline & $\backslash$multicolumn$\{2\}\{$c$|\}\{\}\backslash \backslash$

$\backslash$hline Year & Depreciation Expense & Accumulated Depreciation & Book Value $\backslash \backslash$

$\backslash$hline $2017$ & $\backslash (\backslash$# $7\backslash )$ & $\backslash (\backslash$# $8\backslash )$ & $\backslash (\backslash$# $9\backslash )\backslash \backslash$

$\backslash$hline $2018$ & $\backslash (\backslash$# $10\backslash )$ & $\backslash (\backslash$# $11\backslash )$ & $\backslash (\backslash$# $12\backslash )\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$