Restek Chromatography Products and Solutions company purchased new packaging equipment with an estimated useful life of 10 years. Cost of the equipment was $20,000 and the salvage value was estimated to be $3000 at the end of its useful like.
a) For their company financial records, they are using the double declining-balance depreciation method. What is the depreciation amount they would record in their company financial records for the 7th year of the asset’s life?
b) If the company was instead using the straight-line method of depreciation, what would be the depreciation amount they would record in their company financial records for the 7th year of the asset’s life?