Windsor Company purchased a new plant asset on April 1, 2020, at a cost of $735,000. It was estimated to have a service life of 20 years and a salvage value of $58,800. Windsor’ accounting period is the calendar year.
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Compute the depreciation for this asset for 2020 and 2021 using the
sumoftheyears'digits method. (Round answers to 0
decimal places, e.g. 45,892.)
Depreciation for 2020 
$enter a dollar amount 


Depreciation for 2021 
$enter a dollar amount 
Compute the depreciation for this asset for 2020 and 2021 using
the doubledecliningbalance method. (Round answers to
0 decimal places, e.g. 45,892.)
Depreciation for 2020 
$enter a dollar amount 


Depreciation for 2021 
$enter a dollar amount 
(A)
Under sumoftheyears'digit method,
depreciable value = initial cost  salvage value
= $735000  $58800 = $676200
Depreciation per annum = depreciable value x (remaining useful life of asset/sum of the years' digit)
Sum of the years' digit = 1+2+3+4+5+6+7+8+9+10+11+12+13+14+15+16+17+18+19+20 = 210
Therefore,
For 2020 (9 months)
Depreciation expenses = $676200 x (20/210) x (9/12)
= $64400 x (9/12) = $48300
For 2021
Depreciation expenses = $676200 x (19/210) =
$61180
(B)
Under double declining balance method,
Depreciation per annum = (200%/useful life) x book value at the beginning of period
Therefore
For 2020 (9 months):
Book value in the beginning = $735000
Depreciation expenses = (200%/20) x $735000 x (9/12)
= $73500 x (9/12) = $55125
Book value at the end = $679875
For 2021:
Book value in the beginning = $679875
Depreciation expenses = 10% x $679875 = $67988
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