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Question - On January 1, 2015, Declan Company purchased a machine for $153,300. Declan paid $12,000 to ship the machine from the manufacturer in China and $3,200 in customs fees and $1,500 to rearrange the workspace to fit the machine. The machine had a $20,000 salvage value and a five -year useful life.
Required -
1. Assume that Declan purchased the machine on May 1st instead of January 1st. How much depreciation expense would they recognize in a) year 1 and b) year 2, assuming that they used the straight-line method?
2. Assume that Declan purchased the machine on May 1st instead of January 1st. A chart has to show the depreciation expense, accumulated depreciation and book value for all years assuming that they used the double-declining balance method?
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