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  3. at the beginning of the year, mitt corporation bou

At the beginning of the year, Mitt Corporation bought machinery, shelving, and a forklift. The...

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Accounting

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At the beginning of the year, Mitt Corporation bought machinery, shelving, and a forklift. The machinery initially cost $30,800 but had to be overhauled (at a cost of $2,240 ) before it could be installed (at a cost of $1,120) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $480 in each year. The shelving cost $9,950 and was expected to last 5 years, with a residual value of $730. The forklift cost $16,650 and was expected to last six years, with a residual value of $2,260. 5. Compute double-declining-balance depreciation expense for years 1 and 2 for the forklift. TiP: Remember that the formula for louble-declining-balance uses cost minus accumulated depreciation (not residual value)

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