Vans Company purchased a piece of equipment at the beginning of 2011. The equipment cost $860,000. It has an estimated service life of 8 years and an expected salvage value of $140,000. The sum-of-the-years'-digits method of depreciation is being used. Someone has already correctly prepared a depreciation schedule for this asset. This schedule shows that $120,000 will be depreciated for a particular calendar year.
Instructions
Show calculations to determine for what particular year the depreciation amount for this asset will be $120,000.