Question

Marigold Company purchases equipment on January 1, Year 1, at a cost of $576,870. The asset is expected to have a service life of 12 years and a salvage value of $49,200.

Compute the amount of depreciation for Years 1 through 3 using the straight-line depreciation method. (Round answers to 0 decimal places, e.g. 5,125.)

Depreciation for Year 1 $

Depreciation for Year 2 $

Depreciation for Year 3 $ LINK TO TEXT

Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years'-digits method.

Depreciation for Year 1 $

Depreciation for Year 2 $

Depreciation for Year 3 $ LINK TO TEXT

Compute the amount of depreciation for each of Years 1 through 3 using the double-declining-balance method. (Round depreciation rate to 2 decimal places, e.g. 15.84%. Round answers to 0 decimal places, e.g. 45,892.)

Depreciation for Year 1 $

Depreciation for Year 2 $

Depreciation for Year 3 $

Answer 1

1)
	Depreciation expense -Straight line
	(original cost - salvage value)/useful life
	(576,870 - 49200)/12
	43973
	Depreciation for year 1			43973
	Depreciation for year 2			43973
	Depreciation for year 3			43973
2)	Sum of years digit
	n*(n+1)/2
	78
	Depreciation for year 1			81180
	Depreciation for year 2			74415
	Depreciation for year 3			67650
3)	double decling
	rate = 1/12*2
		16.67%
	Depreciation for year 1			96145
	Depreciation for year 2			80121
	Depreciation for year 3			66767