I’m studying for my Engineering class and don’t understand how to answer this. Can you help me study?
- A new machine costs $42,000 and has a $2000 salvage value at the end of its 8-year useful life. Determine the straight-line (SL), and the double declining balance (DDB) depreciation schedules for the machine.
- A small manufacturing firm has just purchased a machine for $48,000. The shop manager estimates the machine has a useful life of 5 years and no salvage value. Compute the depreciation schedule using:
- Straight-line depreciation
- Sum-of-years’-digits depreciation
c. Double declining balance depreciation (assume any remaining depreciation isclaimed in the last year)