Annual depreciation allowances and resulting book values

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Reference no: EM131090357

In tax year 1, an electronics-packaging firm had a gross income of $25,000,000, 5,000,000 in salaries, $4,000,000 in wages, a loan principal payment of $200,000, an loan interest payment of $210,000. Other data on one of long-term asset:

Cost of the asset, $132,000

Useful life, 5 years

Salvage value, $ 20,000

Compute the annual depreciation allowances and the resulting book values, using

(a) The straight-line depreciation method.

(b) The double-declining-balance method.

Note : with details explanation

Reference no: EM131090357

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