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Assume that MHS purchased two additional pieces of equipment on April 1 (the first day of its fiscal year), as follows:
1. The laboratory equipment cost $300,000 and has an expected life of 5 years. The salvage value is 5% of cost. No equipment was traded in on this purchase.
2. The radiology equipment cost $800,000 and has an expected life of 7 years. The salvage value is 10% of cost. No equipment was traded in on this purchase.
Required:
For pieces of equipment:
1. Compute the straight-line depreciation.
2. Compute the double-declining balance depreciation.
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