Using the double declining balance method

Reference no: EM131020887

Cutter Enterprises purchased equipment for $54,000 on January 1, 2016. The equipment is expected to have a five-year life and a residual value of $8,400.

Using the sum-of-the-years'-digits method, depreciation for 2016 and book value at December 31, 2016, would be

Also if Cutter Enterprises purchased equipment for $87,000 on January 1, 2016. The equipment is expected to have a five-year life and a residual value of $4,500.

Using the double-declining balance method, depreciation for 2016 and the book value at December 31, 2016, would be

Reference no: EM131020887

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