Sneetch Inc

Essay

Sneetch Inc. purchased a star-making machine on 1/1/2011. The cost of the machine was $17,000. Its estimated residual value was $2,000 at the end of an estimated 10-year life.
a. Calculate depreciation expense for 2011 and 2012 using the straight-line method.
b. Calculate depreciation expense for 2011 and 2012 using the double-declining balance method.
c. Calculate the net book value of the machine as of 12/31/2012 under straight -line depreciation.
d. Calculate the net book value of the machine as of 12/31/2012 under double-declining-balance depreciation.