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Testbank Problem 134 (Part Level Submission) On July 1, 2020, Blue Spruce Company purchased for...

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Testbank Problem 134 (Part Level Submission) On July 1, 2020, Blue Spruce Company purchased for 56,660,000 snow-making equipment having an estimated useful life of 5 years with an estimated salvage value of $277,500. Depreciation is taken for the portion of the year the asset is used. (a) your answer is correct. Complete the form below by determining the depreciation expense and year-end book values for 2020 and 2021 using the 1. sum-of-the-years'-digits method. 2. double-declining balance method. 2020 2021 Sum-of-the-Years'-Digits Method Equipment Less: Accumulated Depreciation $6,660,000 $6,660,000 1063750 2978500 Year-End Book Value 5596250 3681500 1063750 1914750 Depreciation Expense for the Year Double-Declining Balance Method Equipment Less: Accumulated Depreciation $6,660,000 56,660,000 1332000 3463200 Year-End Book Value 5328000 3196800 Depreciation Expense for the Year 1332000 2131200 Assume the company had used straight-line depreciation during 2020 and 2021. During 2022, the company determined that the equipment would be useful to the company for only one more year beyond 2022. Salvage value is estimated at $370,000. What is the depreciation base of this asset? Depreciation base 4467750

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