Depreciation Methods
A machine costing $307,800 was purchased May 1. The machine should be obsolete after three years and, therefore, no longer useful to the company. The estimated salvage value is $5,400. Calculate the depreciation expense for each year of its expected useful life using each of the following depreciation methods: (a) straight-line, (b) double-declining balance. For double-declining balance, do not round until your final answer. Round your final answers to the nearest dollar.
| a. Straight-line: | |
| Year 1: | $ |
| Year 2: | |
| Year 3: | |
| Year 4: | |
| b. Double-declining balance: | |
| Year 1: | $ |
| Year 2: | |
| Year 3: | |
| Year 4: | |
