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In January 2011, Rogers Co. purchased a machine that cost $85,000. The equipment is estimated to have a 5-year life and a salvage value of $15,000.
a) Compute the amount of depreciation expense for 2011 and 2012 using the double declining balance method.
b) Compute the amount of MACRS depreciation for the above equipment for 2011 assuming the property is 5 year property and the MACRS percentage is 20%.
INTER-COMPANY TRANSACTIONS AND BALANCES As the associate company is not consolidated, care should be taken when there are trading transactions and inter-company balances between
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