Calculate depreciation expense using straight-line method

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Asphalt Inc. lays asphalt in parking lots and roadways. This year they were awarded the state roadway contract and decided to purchase new equipment.

Asphalt purchased a new piece of equipment with a cost of $43,600 and a $6,000 salvage value, and placed it into service on April 1, Year 1. The equipment was installed at an additional cost of $3,400. The estimated life of the equipment is 8 years.

Required:

Calculate depreciation expense for year 1 using the straight-line method.
Calculate depreciation expense for year 2 using the double-declining balance method
Calculate depreciation expense for year 1 using the straight-line method

Calculate depreciation expense for year 2 using the double-declining balance method

Reference no: EM131797589

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