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Montoini Company purchases equipment on January 1, year 1, at a cost of $469,000. The asset is expected to have a service life of 12 years and a salvage value of $40,000.
(a) Compute the amount of depreciation for each of years 1 through 3 using the straight-line depreciation method.
(b) Compute the amount of depreciation for each of years 1 through 3 using the sum-of-the-years'-digits method.
(c) Compute the amount of depreciation for each of years 1 through 3 using the double-declining balance method.
(In performing your calculations, round percentage to the nearest one-hundredth of a point and round answers to the nearest dollar.)
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