Oklahoma Foundry, Inc. purchased new manufacturing equipment that cost $9,000. T

Question

Oklahoma Foundry, Inc. purchased new manufacturing equipment that cost $9,000. The equipment has a residual value of $1,100 and an estimated useful life of 8 years. Using the declining-balance method of depreciation with twice the straight-line depreciation rate, calculate the following. (If necessary, round your responses to the nearest cent.) sD 1. Annaal depreciation expense for year I: 2. Book value at the end of year 1: 3. Annual depreciation expense for year 2: 4. Book value at the end of year 2 SD n Clear Undo Help Next>> I don't know

Explanation / Answer

Double declining method Depreciation rate = 1*200% / 8 25.00% Book value Depreciation 9000 Year 1 9000*25% 2250 6750 Year 2 6750*25% 1687.5 5062.5

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