Monte's Coffee Company purchased packaging equipment on January 5, 2014, for $90,000. The equipment was expected to have a useful life of three years, or 20,000 operating hours, and a residual value of $6,000. The equipment was used for 8,900 hours during 2014, 7,100 hours in 2015, and 4,000 hours in 2016.
Monte's Coffee Company purchased packaging equipment on January 5, 2014, for $90,000. The equipment was expected to have a useful life of three years, or 20,000 operating hours, and a residual value of $6,000. The equipment was used for 8,900 hours during 2014, 7,100 hours in 2015, and 4,000 hours in 2016.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Monte's Coffee Company purchased packaging equipment on January 5,
2014, for $90,000. The equipment was expected to have a useful life of
three years, or 20,000 operating hours, and a residual value of $6,000. The
equipment was used for 8,900 hours during 2014, 7,100 hours in 2015, and
4,000 hours in 2016.
Determine the amount of depreciation expense for the years ended
December 31, 2014, 2015, and 2016 by (a) the straight-line method,
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