Using the sum-of-the-years-digits method

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Reference no: EM13795255

Judds Company purchased a new plant asset on April 1, 2014, at a cost of $711,000. It was estimated to have a service life of 20 years and a salvage value of $60,000. Judds’ accounting period is the calendar year.

Instructions

(a) Compute the depreciation for this asset for 2014 and 2015 using the sum-of-the-years’-digits method.

(b) Compute the depreciation for this asset for 2014 and 2015 using the double-declining-balance method.

Reference no: EM13795255

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