Double declining-balance depreciation method

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Reference no: EM131101340

Restek Chromatography Products and Solutions company purchased new packaging equipment with an estimated useful life of 10 years. Cost of the equipment was $20,000 and the salvage value was estimated to be $3000 at the end of its useful like.

a) For their company financial records, they are using the double declining-balance depreciation method. What is the depreciation amount they would record in their company financial records for the 7^th year of the asset’s life?

b) If the company was instead using the straight-line method of depreciation, what would be the depreciation amount they would record in their company financial records for the 7^th year of the asset’s life?

Reference no: EM131101340

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