Gandolif Constrution Co. Purchased a used CAT 336DL earth mover at a cost of $500,000 in January 2016. The compnay's estimated useful life of this heavy equipment is 10 years and the estimated salvage value is $100,000.
A. Using straight line depreciation calculate the depreciation expense to be recognized for 2010, first year of the equipments life and calculate the equipment net book value at December 31st after the third year of the equipments life
B. Using declining balance depreciation at twice the straight line rate, calculate the depreciation expense to be recognized for 2018 the thrid year of the equipment's life