Problem
Thackston Company purchases a piece of equipment with an acquisition cost of $94,000 and a salvage of $4,000. The equipment has an estimated useful life of 6 years.
a. Calculate the annual depreciation expense, the accumulated deprecation and the book value for each of the asset's first three years using the the Straight-Line method.
b. Calculate the annual depreciation expense, the accumulated deprecation and the book value for each of the asset's six-years using the Double-Declining Balance method.