question 1

Problem \#1 - Depreciation Example 25 points - S Company purchased a fabricating machine on January 1, 2006, at net cost of $300,000 - Estimates a 4-year useful life - Salvage value =$20,000 - Fiscal year ends December 31st - Estimate machine hours 25,000 - Actual machine hours Compute Depreciation Expense for 2006 through 2009 using the following methods: a. Sum of the years digits b. Double declining balance (Complete the schedule below and show your work on separate paper) NO WORK = NO POINTS Sum of Years Digits If an amount is $0, indicate $0 - DO NOT LEAVE DEPRECIATION EXPENSE BOX BLANK