Instructions:
Using the sum-of-the-years'-digit and double-declining balance depreciation methods,
compute the depreciation expense for 2024 and 2025 and the book value of the machine
at the end of 2025 for each of the following two independent cases. Please show your work
briefly and have your final answers summarized in the tables. Round the final answers
in the tables to the nearest dollar when needed.
a. Sky Co. acquired a machine on January 1, 2024, at a cost of 53,000. The machine has an
estimated salvage value of $ 8,200 at the end of its 7-year useful life. The depreciation
adjustment is done at the end of every calendar year.
Depreciation method
Sum-of-the-years'-digits
Double declining balance
Depreciation expense
Depreciation expense
for 2025
Book value as of
Dec. 31, 2025
for 2024
b. Ocean Co. acquired a machine on June 1, 2024, at a cost of $53,000. The machine has an
estimated salvage value of $ 8,200 at the end of its 7-year useful life. The depreciation
adjustment is done at the end of every calendar year.
Depreciation method
Sum-of-the-years'-digits
Double declining balance
Depreciation expense
for 2024
Depreciation expense
for 2025
Book value as of
Dec. 31, 2025
