compute the amount of depreciation to be taken in the first year assuming lowham s g 575991

At the beginning of 2003, Lowham s Guest Ranch constructed a new walk in freezer that had a useful life of 10 years. At the end of 10 years, the motor could be salvaged for $2,000. In addition to construction costs that totaled $10,000, the following costs were incurred:

1. What is the cost of the walk in freezer to Lowham s Guest Ranch?

2. Compute the amount of depreciation to be taken in the first year assuming Lowham s Guest Ranch uses the

a. Double declining balance method.

b. Sum of the years digits method.