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Question
On January 1, Golden Sales bought $135,000 in fixed assets associated with sales equipment. The residual value of these assets is estimated at $10,000 at the end of their 4-year service life. Golden Sales managers want to evaluate the options of depreciation.
a. Compute the annual straight-line depreciation, and journalize the sample depreciation entry to be recorded at the end of each of the 4 years.
b. Compute the double-declining-balance depreciation, and journalize the depreciation entries to be recorded at the end of each of the 4 years.
Answer
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