Recognize depreciation for each of the five years

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Reference no: EM13929050

At the beginning of 2013, Metal Manufacturing purchased a new computerized drill press for $75,000. It is expected to have a five year life and a $15,000 salvage value.

Required: 

a. Compute the depreciation for each of the five years, assuming that the company uses
(1) Straight line depreciation. 
(2) Double declining balance depreciation. 

b. Record the purchase of the drill press and the depreciation expense for the first year under the straight line and double declining balance methods in a financial statements model like the following one:

1861_264-B-A-I-A (3467).png

c. Prepare the journal entries to recognize depreciation for each of the five years, assuming that the company uses
(1) Straight line depreciation. 
(2) Double declining balance depreciation. 

Reference no: EM13929050

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