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Question - Garage purchased a specialized machine on April 1, 2021 for a total cost of $ 254,000 from Scissor Manufactory. This machine is expected to become outdated and be replaced in 16 years changed to 15 years at which time it will have a residual value of $ 25,000. Changed to 30,000.
Instructions -
1. What amount Garage's would be reported as depreciation expense for this machine for December 31, 2021 and December 31, 2022 under the following depreciation methods?
i) Straight-line method
ii) Double diminishing-balance method
2. What is the machine's carrying amount at January 1, 2023 under both depreciation methods discussed in part a?
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