Equipment Acquired on October 1, 2014, at a Cost of $540,000

question 135

Essay

Equipment acquired on October 1, 2014, at a cost of $540,000 has an estimated useful life of 10 years. The residual value is estimated to be $55,000 at the end of the equipment's useful life. The company has a December 31 year end.
Instructions
Calculate the depreciation expense for December 31, 2014 and 2015 using:
a. the straight-line method.
b. the double diminishing-balance method.

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Definitions:

Trochlear

The trochlear is a nerve that controls the movement of the eye muscle responsible for the downward and inward movement of the eye.

Trigeminal

Relating to the trigeminal nerve, which is the fifth cranial nerve responsible for sensation in the face and motor functions such as biting and chewing.

Facial

A beauty treatment for the face, typically including cleansing, steam, exfoliation, extractions, creams, lotions, facial masks, peels, and massage.

Trigeminal Nerves

The fifth cranial nerve responsible for sensory data in the face and motor functions such as biting and chewing.