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laylay120
laylay120
24.05.2021 • 
Business

On July 1, 2020, Sheffield Company purchased for $5,940,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $247,500. Depreciation is taken for the portion of the year the asset is used. Complete the form below by determining the depreciation expense and year-end book values for 2017 and 2018 using the
1. sum-of-the-years'-digits method.
2. double-declining balance method.
2020 2021
Sum-of-the-Years'-Digits Method
Equipment $3,600,000 $3,600,000
Less: Accumulated Depreciation $ $
Year-End Book Value
Depreciation Expense for the Year
Double-Declining Balance Method
Equipment $3,600,000 $3,600,000
Less: Accumulated Depreciation $ $
Year-End Book Value
Depreciation Expense for the Year
Assume the company had used straight-line depreciation during 2017 and 2018. During 2019, the company determined that the equipment would be useful to the company for only one more year beyond 2019. Salvage value is estimated at $200,000.
Compute the amount of depreciation expense for the 2019 income statement.
Depreciation expense
$
Assume the company had used straight-line depreciation during 2017 and 2018. During 2019, the company determined that the equipment would be useful to the company for only one more year beyond 2019. Salvage value is estimated at $200,000.
What is the depreciation base of this asset?
Depreciation base
$

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