Miller Incorporated acquired a machine that cost $ on October The machine will have a fouryear useful
life and an estimated salvage value of $ at the end of its life. Porter uses the calendar year for financial reporting. Depreciation
expense for onefourth of a year was recorded in
Required:
a Using the straightline depreciation method, calculate the depreciation expense to be recognized in the income statement for the
year ended December and the balance of the Accumulated Depreciation account as of December Note: This is
the third calendar year in which the asset has been used.
b Using the doubledecliningbalance depreciation method, calculate the depreciation expense for the year ended December
and the net book value of the machine at that date.
Note: Round intermediate calculations.
