Measure double declining balance depreciation and analyze the effort of a sale on a plant asset.
Assume that on 2JAN14 Design House of Nebraska purchased fixtures for $9,200 cash. The fixtures are expected to remain in service for 5 years. Design House has depreciated the fixtures on a double declining balance basis with an expected residual value of $1,100. On 31OCT15 Design House sold the fixtures for $2,700 in cash.
a. Straight Line
b. Double Declining Value