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On April 22, 2020, Sandhill Enterprises purchased equipment for $138,700. The company expects to use the equipment for 11,500 working hours during its 4-year life and that it will have a residual value of $14,500. Sandhill has a December 31 year end and pro- rates depreciation to the nearest month. The actual machine usage was: 1,500 hours in 2020; 3,000 hours in 2021; 3,600 hours in 2022; 2,600 hours in 2023; and 1,000 hours in 2024. A) Calculate depreciation expense for the life of the asset under double diminishing-balance method.

On April 22, 2020, Sandhill Enterprises purchased equipment for $138,700. The company expects to use the equipment for 11,500 working hours during its 4-year life and that it will have a residual value of $14,500. Sandhill has a December 31 year end and pro- rates depreciation to the nearest month. The actual machine usage was: 1,500 hours in 2020; 3,000 hours in 2021; 3,600 hours in 2022; 2,600 hours in 2023; and 1,000 hours in 2024. A) Calculate depreciation expense for the life of the asset under double diminishing-balance method.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On April 22, 2020, Sandhill Enterprises purchased equipment for $138,700. The company expects to use the equipment for 11,500 working hours during its 4-year life and that it will have a residual value of $14,500. Sandhill has a December 31 year end and pro- rates depreciation to the nearest month. The actual machine usage was: 1,500 hours in 2020; 3,000 hours in 2021; 3,600 hours in 2022; 2,600 hours in 2023; and 1,000 hours in 2024. A) Calculate depreciation expense for the life of the asset under double diminishing-balance method.
Transcribed Image Text:On April 22, 2020, Sandhill Enterprises purchased equipment for $138,700. The company expects to use the equipment for 11,500 working hours during its 4-year life and that it will have a residual value of $14,500. Sandhill has a December 31 year end and pro- rates depreciation to the nearest month. The actual machine usage was: 1,500 hours in 2020; 3,000 hours in 2021; 3,600 hours in 2022; 2,600 hours in 2023; and 1,000 hours in 2024. A) Calculate depreciation expense for the life of the asset under double diminishing-balance method.
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