On January 1, 2003, Eiger Company Purchased A New Piece Of Machinery. The Machine Cost $200,000. Optional Equipment For The Machine Was Also Purchased At A Cost Of $14,000. The Manufacturer Charged $1,400 To Install The Option. The Estimated Life Of The Machine Was 7 Years And The Estimated Service Life Of The Machine In Hours Was 21,000. The Estimated Salvage Value Of The Machine Was $4,000. The Machine Was Used For 2,700 Hours In 2005.

Compute Depreciation Expense For 2005 Under Each Of The Following
Methods:

A) Straight-line
B) Double Declining Balance
C) Sum Of The Years Digits
D) Service Hours
E) Macrs (using The Following Rates):
Year 1 14.29%
Year 2 24.49%
Year 3 17.49%
Year 4 12.49%
Year 5 8.93%
Year 6 8.92%
Year 7 8.93%
Year 8 4.46%


Can I Find The Depreciation For 2005 With Out Doing The Rest Of The Years?

No.

But it is only 3 yrs. And once you know how to do Year 1, Years 2 and 3 are a piece of cake.

I think I am doing this in my a-level business studies class wow! Lol

Most items begin losing value as soon as they leave the store. How quickly items depreciate depends on various factors.
Depreciation methods