E11-1B (Depreciation Computations—SL, SYD, DDB) Vaughn Company purchases equipment on January 1, Year 1, at a cost of $500,000. The asset is expected to have a service life of 10 years and a salvage value of $50,000.
(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.
of a point and round answers to the nearest dollar.)
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