Coronado Company purchases equipment on January 1, Year 1, at a cost of $540,000. The asset is expected to have a service life of 12 years and a salvage value of $48,600. Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method.
Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years'-digits method.
Compute the amount of depreciation for each of Years 1 through 3 using the double-declining-balance method.