Sandblasting equipment acquired at a cost of $64,000 has an estimated residual value of $4,000 and an estimated useful life of eight years. It was placed in service on April 1 of the current fiscal year, which ends on December 31.
a. Determine the depreciation for the current fiscal year and for the following fiscal year by straight-line method.
Depreciation
Year 1 ? $
Year 2 ? $
b. Determine the depreciation for the current fiscal year and the following fiscal year by the double-declining-balance method.
Depreciation
Year 1 ? $
Year 2 ? $