Cost of $68.000
residual value of $18,000
useful life of 10 years
placed in service on 10/1 of current fiscal year which ends on 12/31

a determine the depreciation for the current fiscal year and for the following fiscal year by (a) straight-line method and (b) double-declining-balance method.

A: Straight line Depreciation method is:

Cost less Salvage Value/ estimated service life

($68,000-18,000)/10 = $5,000 a year

Being first year is a partial year then take the $5,000 X 3/12 (months used in the year) = $1,250.

2nd year is $5,000.

B. Double declining balance: First you need to figure out the rate.
1/ Estimated Service Life, 1/10 = 10% X 2 = 20%.

Next take the cost of $68,000 X 20% X 3/12 (number of months used in the year) = $3,400 Depreciation Expense for the First year.

For the Second year take Cost - Depreciation = Remaining Book Value
$68,000 - $3,400 = $64,600

Take the $64,600 X 20% = $12,920 for the second year.