Answer:
$260,437.50
$108,750
Step-by-step explanation:
Here is the complete question :
Fill in the book value at the end of year 1 under each depreciation method when residual value is $36,000 and useful life is 4 years: Depreciation method:
Straight-line $335,250
Units-of-Output
Double-declining $217,500
Book value = cost of the asset - first year depreciation expense
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
(335250 - 36,000) / 2 = $74,812.50
Book value = $335,250 - $74,812.50 = $260,437.50
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2/4 = 0.5
$217,500 x 0.5 = 108,750
Book value = $217,500 - 108,750 = $108750
