1.Able Company purchase a machine for $35,000 on January 1, 2013. The fair market value of the machine is $42,000 and the cost to install and calibrate the machine inside it warehouse was $10,000. Management expects the machine to last four years and estimates it's salvage value at that time to be $5000. How much depreciation expense should the company recognize on it's 2013 income statement?
2.Assuming Able Company from #3 used the double declining balance method, what would depreciation expense be in 2014? (year 2)