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Organization purchased two pieces of equipment

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Reference no: EM131412580

Assume that an organization purchased two pieces of equipment on April 1st (the first day of its fiscal year), as follows

(1) One laboratory equipment that costs $400,000 and has an expected life of five years. The salvage value is 5 percent of the cost. No equipment was traded in on this purchase.

(2) One radiology equipment that cost $900,000 and has an expected life of 7 years. The salvage value is 10m percent of the cost. No equipment was traded in on this purchase.

For each piece of equipment:

1. Compute the straight -line depreciation for:

a) the lab equipment

b) the radiology equipment

2. Compute the double declining balance depreciation for:

a) the lab equipment

b) the radiology equipment

Reference no: EM131412580

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