Tarnish Company

Straight line rate (100%/5years) 20%

Double declining rate (20%x2) 40%

2020 (5,000,000 x 40%) 2,000,000

2021 (3,000,000 x 40%) 1,200,000
Accumulated depreciation - 12/31/2021 3,200,000
Depreciation for 2022 - straight line [(5,000,000 - 3,200,000)/3 years] 600,000
Accumulated depreciation - 12/31/2022 3,800,000
Mogul Company
SYD = 1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9 + 10 = 55

Depreciable cost (240,000/ 8/55) 1,650,000

Residual value 50,000
Total cost of the equipment 1,700,000