On April 1, 2016, Cyclone's Backhoe Co. purchases a trencher for $288,000.

On April 1, 2016, Cyclone's Backhoe Co. purchases a trencher for $288,000. The machine is expected to last five years and have a salvage value of $44,000.

Compute depreciation expense for both years ending December 2016 and 2017 assuming the company uses the straight-line method.

Choose Numerator: / Choose Denominator: = Annual Depreciation Cost minus salvageselected answer correct / Estimated useful life (years)selected answer correct = Annual depreciation $244,000selected answer correct / 5selected answer correct = $48,800 Year Annual Depreciation x Fraction of Year = Depreciation Expense 2016 $48,800 x 9/12selected answer correct $36,600selected answer correct 2017 $48,800 x 12/12selected answer correct $48,800selected answer correct

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6.

 On April 1, 2016, Cyclone's Backhoe Co. purchases a trencher for $288,000. The machine is expected to last five years and have a salvage value of $44,000.

Compute depreciation expense for both years ending December 2016 and 2017 assuming the company uses the double-declining-balance method. (Enter all amounts positive values.)

Depreciation for the Period End of Period Annual Period Beginning of Period Book Value Depreciation Rate Partial Year Depreciation Expense Accumulated Depreciation Book Value 2016 $288,000selected answer correct 40%selected answer correct 9/12selected answer correct $86,400selected answer correct $86,400 $201,600 2017 $201,600selected answer correct 40%selected answer correct 12/12selected answer correct $80,640selected answer correct $167,040 $120,960