Amwaj Indstrial Co. purchased an equipment for $720,000 on 1 Jan. 2020. It is estimated that the equipment will have a 10-year useful life or 350,000 units over its useful life and its salvage value at the end of useful life is estimated as $20,000. Required: Compute the depreciation expense for the year ended December 31, 2020, using the following methods of depreciation. (Please, SHOW YOUR CALCULATIONS): 1. Straight-line method of depreciation. 2. Units-of-production method of depreciation assuming that the company produced 42,000 units in 2020. 3. Double-declining-balance method of depreciation.

Amwaj Indstrial Co. purchased an equipment for $720,000 on 1 Jan. 2020. It is estimated that the equipment will have a 10-year useful life or 350,000 units over its useful life and its salvage value at the end of useful life is estimated as $20,000. Required: Compute the depreciation expense for the year ended December 31, 2020, using the following methods of depreciation. (Please, SHOW YOUR CALCULATIONS): 1. Straight-line method of depreciation. 2. Units-of-production method of depreciation assuming that the company produced 42,000 units in 2020. 3. Double-declining-balance method of depreciation.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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