Question - On April 30, 2018, Quality Appliances purchased equipment for $262,000. The estimated service life of the equipment is six years and the estimated residual value is $19,000. Quality's fiscal year ends on December 31.
Required: Calculate depreciation for 2018 and 2019 using each of the three methods listed. Quality calculates partial year depreciation based on the number of months the asset is in service.
Straight-line
Sum of the years' digit
Double declining balance