Depreciation Methods The Nickle Company purchased an asset for $17,000 on January 2, 2007. The asset has an expected residual value of $1,000. The depreciation expense for 2007 and 2008 is shown next for three alternative depreciation methods:

Year

Method A

Method B

Method C

2007

$4,000

$6,400

$6,375

2008

4,000

4,800

3,984

Required

1. Which depreciation method is the company using in each example?

2. Compute the depreciation expense for 2009 and 2010 under each method.