1. Martha Run buys a new duplicating machine for $20,000 with a residual value of $2,000 on January 5. Its estimated life is 5 years. Calculate the book value at the end of year 1 using double declining balance.
2. Al Smooth is having difficulty calculating the total depreciation expense for his truck. Al purchaed the truck on April 17, 2008. The cost of the truck is $16,000 with a residual value of $1,000. The truck's estimated life is 3 years. Using the sum-of-the-years'-digits depreciation method, what is the depreciation expense for the last year.
3. Adjax bought a machine for $86,000 on October 23 . Its estimated life is 10 years with a residual value of $6,000. Using the straight-line method, what is the depreciation of the machine for year two?
4. Bing Corporation purchases a new shoe machine costing $26,000 on Jan 10. The machine has an estimated life of 8 years with a residual value of $2,000. In year 3, what is the depreciation expense assuming Bing uses sum-of-the-years'-digits method?
5. A truck costing $25,000 with a residual value of $5,000 was purchased by Rim Corporation on August 5. The truck's estimated life is 10 years. At the end of year 2 what is the remaining book value using double declining balance method?