Asphalt Inc. lays asphalt in parking lots and roadways. This year they were awarded the state roadway contract and decided to purchase new equipment.
Asphalt purchased a new piece of equipment with a cost of $43,600 and a $6,000 salvage value, and placed it into service on April 1, Year 1. The equipment was installed at an additional cost of $3,400. The estimated life of the equipment is 8 years.
Required:
Calculate depreciation expense for year 1 using the straight-line method.
Calculate depreciation expense for year 2 using the double-declining balance method
Calculate depreciation expense for year 1 using the straight-line method
Calculate depreciation expense for year 2 using the double-declining balance method