Nichols Company purchased a new machine for $250,000. It is estimated that the machine will have a $25,000 salvage value at the end of its 5-year useful service life. The double-declining-balance method of depreciation will be used.
Instructions
Prepare a depreciation schedule that shows the annual depreciation expense on the machine for its 5-year life.

Question

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The Answer of Nichols Company purchased a new machine for $250,000. It is estimated that the machine will have a $25,000 salvage value at the end of its 5-year useful service life. The double-declining-balance method of depreciation will be used.
Instructions
Prepare a depreciation schedule that shows the annual depreciation expense on the machine for its 5-year life.

Nichols Company Purchased a New Machine for $250,000