On January 1, Year 1, Rainey Company Purchased a Machine

Essay

On January 1, Year 1, Rainey Company purchased a machine that cost $150,000. The equipment is estimated to have a 5-year life and a salvage value of $30,000.
Required: a)Compute the amount of depreciation expense using the double-declining-balance method for:(1)Year 1(2)Year 2b)Compute the amount of MACRS depreciation for the above equipment for Year 1 assuming the property is 5-year property and the MACRS percentage is 20%.