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Utley Company purchased a new piece of equipment: straight-line depreciation, double-declining-balance depreciation and more...

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Utley Company purchased a new piece of equipment on July 1, 2003 at a cost of $300,000. The equipment has an estimated useful life of 5 years and an estimated salvage value of $25,000. The current year end is 12/31/04. Utley records depreciation to the nearest month.

a. What is straight-line depreciation for 2004?
b. What is sum-of-the-years'-digits depreciation for 2004?
c. What is double-declining-balance depreciation for 2004?
d. If, at the end of 2005, Utley Company decides the equipment still has five more years of life beyond 12/31/05, with a salvage value of $25,000, what is straight-line depreciation for 2005? (Assume straight-line used in all years.)

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Utley Company purchased a new piece of equipment on July 1, 2003 at a cost of $300,000. The equipment has an estimated useful life of 5 years and an estimated salvage value of $25,000. The current year end is 12/31/04. Utley records depreciation to the nearest month.

a. What is straight-line depreciation for 2004?
The depreciable value = 300000-25000=275000
Useful life = 5 ...

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