Exercise Algo Depreciation calculation methods LO
Millco Incorporated acquired a machine that cost $ early in The machine is expected to last for ten years, and its
estimated salvage value at the end of its life is $
Required:
a Using straightline depreciation, calculate the depreciation expense to be recognized in the first year of the machine's life and
calculate the accumulated depreciation after the sixth year of the machine's life.
b Using decliningbalance depreciation at twice the straightline rate, calculate the depreciation expense for the third year of the
machine's life.
c What will be the net book value of the machine at the end of its ten year of use before it is disposed of under each depreciation
method?
Complete this question by entering your answers in the tabs below.
Req C
a Using straightline depreciation, calculate the depreciation expense to be recognized in the first year of the machine's life
and calculate the accumulated depreciation after the sixth year of the machine's life.
b Using decliningbalance depreciation at twice the straightline rate, calculate the depreciation expense for the third year of
the machine's life.
