Reference no: EM132203664

ABC started business on January 1 with the following long-lived fixed assets:

• A 100,000 square foot warehouse for $2.4 million, having an expected useful life of 20 years and a residual value of $200,000
• 24 laptops costing $1,500 each, with an expected useful life of three years and no salvage value
• 5 cars costing $22,000 each, with an expected useful life of five years and a salvage value of $3,000 each

A. Calculate the depreciation expense for each of the long-lived fixed assets for Years 1 and 2 using the straight-line depreciation method. 

B. Calculate the depreciation expense for each of the long-lived fixed assets for Years 1 and 2 using the double-declining balance method. 

C. Determine the net book value for each long-lived fixed asset at the end of Year 2 using:

i. Straight-line depreciation

ii. Double-declining-balance