Answer:
$105000
$90187.5
Step-by-step explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
Cost of asset = $134,000 + $4,500 + $10,000 + $6,000 + $1,500 = $156,000
Depreciation expense = ($156,000 - $20,000) / 8 = $17,000
Book value = cost of asset - Accumulated depreciation
Accumulated depreciation is sum of depreciation expense
Accumulated depreciation at the end of three years = $17,000 x 3 = $51,000
$156,000 - $51,000 = $105,000
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2 x(1/8) = 1/4
Depreciation expense in year 1 = 1/4 x $156,000 = $39,000
book value = $156,000 - $39,000 = $117000
Depreciation expense in year 2 = 1/4 x $117000 = $29,250
book value = $117000 - $29,250 = $87750
Depreciation expense in year 3 = 1/4 x $87500 = 21937.50
Add the depreciation expense from year 1 to 3 to derive the accumulated depreciation