Reference no: EM132534048
Question - On January 1, 2018, Lane and Penn LLC purchased office equipment for $500,000. The firm estimates that the equipment has a useful life of 7 years and a salvage value of $50,000.
These all are independent of each other:
A. Assuming the firm used the straight-line method of depreciation, how would the Balance Sheet presentation of the office equipment appear at December 31, 2019?
B. Assuming the firm used the sum-of-the-years digits method of depreciation, what would be the depreciation expense attributable to the office equipment in 2020?
C. Assuming the firm used the double declining balance method of depreciation, what would be the depreciation expense in 2020?
D. Assuming the firm used the double declining balance method of depreciation, what would the book value of the office equipment be at the end of 2020?
Please help me with the formula along with calculation. Please don't show excel based formula.