Same Day Service purchased a new steam press on January 1, for #35,000. It is expected to have a five year useful life and a $3,000 salvage value same day expects to use the steam press more extensively in the early years of its life.

1.Calculate the depreciation expense for each of the five years, assuming the use of double-declining-balance depreciation

To calculate the depreciation expense using the double-declining-balance method, follow these steps:

Step 1: Determine the straight-line depreciation rate:
The straight-line depreciation rate is calculated by taking 100% divided by the useful life of the asset. In this case, the straight-line depreciation rate would be 100% divided by 5 years, which equals 20%.

Step 2: Determine the double-declining-balance (DDB) depreciation rate:
The DDB depreciation rate is calculated by doubling the straight-line depreciation rate. In this case, it would be 20% x 2 = 40%.

Step 3: Calculate the depreciation expense for each year:
Year 1: (40% x $35,000) = $14,000
Year 2: (40% x ($35,000 - Year 1 depreciation)) = (40% x ($35,000 - $14,000)) = $12,600
Year 3: (40% x ($35,000 - Year 1 depreciation - Year 2 depreciation)) = (40% x ($35,000 - $14,000 - $12,600)) = $7,560
Year 4: (40% x ($35,000 - Year 1 depreciation - Year 2 depreciation - Year 3 depreciation)) = (40% x ($35,000 - $14,000 - $12,600 - $7,560)) = $4,536
Year 5: (40% x ($35,000 - Year 1 depreciation - Year 2 depreciation - Year 3 depreciation - Year 4 depreciation)) = (40% x ($35,000 - $14,000 - $12,600 - $7,560 - $4,536)) = $2,492.40

So, the depreciation expense for each of the five years, using the double-declining-balance method, will be:
Year 1: $14,000
Year 2: $12,600
Year 3: $7,560
Year 4: $4,536
Year 5: $2,492.40