A tractor acquired on January 4 of the current year at a cost of $100,000 has an estimated life of 10 years.
Assuming that it has a residual value of $10,000, determine the depreciation expense in the current year using the straight-line method and the double-declining method.
Instructions:
Determine the Depreciation Expense for the current year using the a) straight line method and b) double declining balance method. Show your solution.