A Plant Asset Acquired on October 1, 2010, at a Cost

question 189

Essay

A plant asset acquired on October 1, 2010, at a cost of $300,000 has an estimated useful life of 10 years. The salvage value is estimated to be $30,000 at the end of the asset's useful life.
Instructions
Determine the depreciation expense for the first two years using:
(a) the straight-line method.
(b) the double-declining-balance method.