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Home / Questions / Freedom Co. purchased a new machine on July 2, 2016, at a total installed cost of \$43,000. The machi

# Freedom Co. purchased a new machine on July 2, 2016, at a total installed cost of \$43,000. The machi

Freedom Co. purchased a new machine on July 2, 2016, at a total installed cost of \$43,000. The machine has an estimated life of five years and an estimated salvage value of \$6,700.

Required:

a-1. Calculate the depreciation expense for each year of the asset&#39;s life using Straight-line depreciation.

 Year Depreciation Expense 1 2 3 4 5

a-2. Calculate the depreciation expense for each year of the asset&#39;s life using Double-declining-balance depreciation.

 Year Depreciation Expense 1 2 3 4 5

b. How much depreciation expense should be recorded by Freedom Co. for its fiscal year ended December 31, 2016, under each method? (Note: The machine will have been used for one-half of its first year of life.)

 Depreciation Expense Straight‑line Double-declining balance

c. Calculate the accumulated depreciation and net book value of the machine at December 31, 2017, under each method.

 Cost Accumulated Depreciation Net Book Value Straight‑line \$43,000 Double-declining‑balance 43,000

Apr 04 2020 View more View Less