(Solution) - Bonds Company purchased a new plant asset on April 1 -(2025 Original AI-Free Solution)

Paper Details

Bonds Company purchased a new plant asset on April 1, 2014, at a cost of $355,500. It was estimated to have a service life of 20 years and a salvage value of $30,000. Bonds?s accounting period is the calendar year.

Instructions
(a) Compute the depreciation for this asset for 2014 and 2015 using the sum-of-the-years?-digits method.
(b) Compute the depreciation for this asset for 2014 and 2015 using the double-declining balance method.