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The Oakdale Country Club has purchased new merchandise display racks for the Pro Shop at a cost of $5,000

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The Oakdale Country Club has purchased new merchandise display racks for the Pro Shop at a cost of $5,000. The life of the racks is five years with a $500 salvage value.

Required:

What is the annual depreciation amount for the first year for both the straight-line method and the double declining balance method.

Straight-line method - 1st year depreciation amount $   (      )

What is the Journal Entry for this depreciation  ? Straight  line method )

Dr.  (       )    $  (       )

Cr.    (         )    $   (    )

Double declining method - 1st year depreciation amount $  (      )