Knife Edge Company purchased tool
sharpening equipment on July 1, 2010, for $16,200. The equipment was expected to have a useful
life of three years and a residual value of $900.
Instructions: determine the amount of
depreciation expense for the years ended December 31, 2010, 2011, 2012, 2013 by
(a) the straight-line method and (b) the double declining-balance method