Problem:
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.
Required:
Question 1: Compute the amount of depreciation expense for 2011 and 2012 using the double declining balance method.
Question 2: 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%.
Note: Please provide through step by step calculations.