Contemporary Engineering Economics 6th Edition by Chan Park

Exercise 43

The Upjohn Company purchased new packaging equipment with an estimated useful life of five years. The cost of the equipment was $55,000, and the salvage value was estimated to be $5,000 at the end of year 5. Compute the annual depreciation expenses over the five-year life of the equipment under each of the following methods of book depreciation:
(a) Straight-line method
(b) Double-declining-balance method