Equipment purchased at the beginning of the fiscal year for $30,000 is expected to have a useful life of 5 years, or 15,000 operating hours, and a residual value of $3,000. Compute the depreciation for the first and second years of use by each of the following methods: (a) straight-line (b) units-of-production (2,500 hours first year; 3,250 hours second year) (c) declining-balance at twice the straight-line rate
Equipment purchased at the beginning of the fiscal year for $30,000 is expected to have a useful life of 5 years, or 15,000 operating hours, and a residual value of $3,000. Compute the
|
(a) |
straight-line |
|
(b) |
units-of-production (2,500 hours first year; 3,250 hours second year) |
|
(c) |
declining-balance at twice the straight-line rate |
(Round the answer to the nearest dollar.)
First Year
|
(a) |
straight-line
|
|
(b) |
units-of-production (2,500 hours first year)
|
|
(c) |
declining-balance at twice the straight-line rate
|
Second Year
|
(a) |
straight-line
|
|
(b) |
units-of-production (3,250 hours second year)
|
|
(c) |
declining-balance at twice the straight-line rate |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
