Deluxe Ezra Company purchases equipment on January 1, Year 1, at a cost of $469,000. The asset is expected to have a service life of 12 years and a sa
Deluxe Ezra Company purchases equipment on January 1, Year 1, at a cost of $469,000. The asset is expected to have a service life of 12 years and a salvage value of $40,000.
\r\nInstructions
\r\n(a) Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method.
\r\n(b) Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years’- digits method.
\r\n(c) Compute the amount of depreciation for each of Years 1 through 3 using the double-declining-balance method. (In performing your calculations, round constant percentage to the nearest one-hundredthof a point and round answers to the nearest dollar.)