Question

Computing Straight-Line and Double-Declining-Balance Depreciation On January 2, Haskins Company purchases a laser cutting machine for use in fabrication of a part for one of its key products. The machine cost $85,000, and its estimated useful life is five years, after which the expected salvage value is $5,000. For both parts (a) and (b) below: (1) Compute depreciation expense for each year of the machine's five-year useful life under that depreciation method. (2) Use the financial statements effects template to show the effect of depreciation for the first year only for that method. (a) Straight-line $Answer 16,000 per year Use negative signs with answers below, when appropriate. Balance Sheet Transaction Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital Record first year depreciation Answer 0 Answer (16,000) Answer 0 Answer 0 Answer (16,000) Income Statement Revenue - Expenses = Net Income Answer 0 Answer 16,000 Answer (16,000) (b) Double-declining Year Depreciation Expense 1 $Answer 0 2 $Answer 0 3 $ Answer 0 4 $Answer 0 5 $Answer 0 Use negative signs with answers below, when appropriate.

Answer 1