Mountain View Resorts purchased equipment at the beginning of 2021 for $40,000. Residual value at the end of an estimated four- year service life is expected to be $8,200. The machine operated for 1,900 hours in the first year and the company expects the machine to operate for a total of 11,000 hours over its four-year life. Calculate depreciation expense for 2021, using each of the following depreciation methods: (1) straight-line, (2) double-declining- balance, and (3) activity-based. (Round your intermediate calculations to 2 decimal places.) Depreciation Expense Straight-line Double-declining-balance Activity-based
Mountain View Resorts purchased equipment at the beginning of 2021 for $40,000. Residual value at the end of an estimated four- year service life is expected to be $8,200. The machine operated for 1,900 hours in the first year and the company expects the machine to operate for a total of 11,000 hours over its four-year life. Calculate depreciation expense for 2021, using each of the following depreciation methods: (1) straight-line, (2) double-declining- balance, and (3) activity-based. (Round your intermediate calculations to 2 decimal places.) Depreciation Expense Straight-line Double-declining-balance Activity-based
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Mountain View Resorts purchased equipment at the beginning of 2021 for $40,000. Residual value at the end of an estimated four-
year service life is expected to be $8,200. The machine operated for 1,900 hours in the first year and the company expects the
machine to operate for a total of 11,000 hours over its four-year life.
Calculate depreciation expense for 2021, using each of the following depreciation methods: (1) straight-line, (2) double-declining-
balance, and (3) activity-based. (Round your intermediate calculations to 2 decimal places.)
Depreciation
Expense
Straight-line
Double-declining-balance
Activity-based](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffbd2edfa-ebf7-4438-babc-36cc5ae93bbd%2Fa9d1624a-4c3e-45cf-9231-6da85a77828e%2Fasyj958_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Mountain View Resorts purchased equipment at the beginning of 2021 for $40,000. Residual value at the end of an estimated four-
year service life is expected to be $8,200. The machine operated for 1,900 hours in the first year and the company expects the
machine to operate for a total of 11,000 hours over its four-year life.
Calculate depreciation expense for 2021, using each of the following depreciation methods: (1) straight-line, (2) double-declining-
balance, and (3) activity-based. (Round your intermediate calculations to 2 decimal places.)
Depreciation
Expense
Straight-line
Double-declining-balance
Activity-based
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