The Up john Company purchased new packaging equipment with an estimated useful life of five years The cost of the equipment was $55,000, and the salvage value was estimated to be $5,000 at the end of year 5 Compute the annual depreciation expenses over the five year life of the equipment under each...

The Up john Company purchased new packaging equipment with an estimated useful life of five years. The

Question:

The Up john Company purchased new packaging equipment with an estimated useful life of five years. The cost of the equipment was $55,000, and the was estimated to be $5,000 at the end of year 5. Compute the annual depreciation expenses over the five-year life of the equipment under each of the following methods of book depreciation:
(a) Straight-line method
(b) Double-declining-balance method Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...