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Depreciation calculation methods.
Freedom Co. purchased a new machine on July 2, 2008, at a total installed cost of 44,000. The machine has an estimated life of 5 yrs and an estimate salvage value of 6,000. How much depreciation expense should be recorded by the coy for its fiscal year ended Dec31, 2008, under each of the three methods? Note the machine will have been used for one-half of its first year of life.
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What expense could Sage Company record as a result of the facts above for the year ended 31 st December, 2012?
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