Analysis Component: Which method will result in the greatest: a. Total assets being reported on the balance sheet in 2020? in 2023?
On January 3, 2020, Xenex Innovations purchased computer equipment for $145,000. The equipment will be used in research and development activities for five years or a total of 10,000 hours and then sold for about $24,000.
Assume actual usage in hours of:
| 2020 | 2021 | 2022 | 2023 | 2024 | |||||
| 1,850 | 1,880 | 3,400 | 3,080 | 3,700 | |||||
1. Calculate
2. Analysis Component
Which method will result in the greatest (Image 2 attached for reference)
a. Total assets being reported on the
b. Operating expenses being reported on the income statement in 2020? in 2023?
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