The table below itemizes several assets. The company uses the double declining balance method to determine depreciation expense, which means that the rate used will be 2 divided by useful life. For example, if estimated useful life is eight years, the declining balance rate would he 2/8 or 25%. Assume in all cases that the asset€™s first and last years are full years, and that all assumptions and estimates used to derive depreciation remain unchanged throughout the assets€™ useful lives.

Required:
a. Calculate depreciation expense for the first, third, fifth, and last years using the double declining balance method.
b. Assume in all cases the assets are sold at their estimated residual value. Prepare the journal entry to record their disposal.

Item Lathe Building Earth-moving truck Electric turbine Stamping machine Cost S 4,000,000 $25,000,000 S Estimated useful life 7 years 20 years 6 years 10 vears 9 years Estimated residual value S 200,000 S 500,000 S 70,000 S 800,000 $3,000,000 700,000 s 7,000,000 S10,000,000