Question: Refer to the information in Exercise. Compute depreciation expense for both 2010 and 2011 assuming the company uses the double-declining-balance method.
Exercise: On April 1, 2010, Stone's Backhoe Co. purchases a trencher for $250,000. The machine is expected to last five years and have a salvage value of $25,000. Compute depreciation expense for both 2010 and 2011 assuming the company uses the straight-line method.