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.