# Calculate Depreciation - three methods

ACCT 731 P21

A machine cost $500,000 on April 1, 2008. Its estimated salvage value is $50,000 and its expected life is eight years.

Directions:

Calculate the depreciation expense (to the nearest dollar) by each of the following methods, showing the figures used on a separate Excel spreadsheet as directed on the Problem Set 3 directions.

a) Straight-line for 2008

b) Double-declining balance for 2009

c) Sum-of-the-years'-digits for 2009.

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#### Solution Summary

The solution computes depreciation using Straight-line, Double-declining & Sum-of-the-years'-digits.

$2.19