Prepare a depreciation schedule: Z Company’s fiscal year starts July 1st and ends June 30th. The company purchased a new machine which was installed and operational at the beginning of the second quarter in October. The machine cost $145,800 and has an estimated useful life of three years and estimated salvage value of $5,400.
Required:
1. Prepare a depreciation schedule showing Net Book value (beginning and ending), depreciation expense, and accumulated depreciation for the asset. Prepare one schedule for each method:
a. Straight-line
b. Double-declining balance.