**Depreciation Calculation for Mountain View Resorts Equipment**Mountain View Resorts purchased equipment at the beginning of 2021 for $40,000. The 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.**Objective:** Calculate the depreciation expense for 2021 using the following depreciation methods:1. **Straight-line**2. **Double-declining-balance**3. **Activity-based***(Round your intermediate calculations to 2 decimal places.)***Depreciation Expense:**- **Straight-line:** [Calculation required]- **Double-declining-balance:** [Calculation required]- **Activity-based:** [Calculation required]

Answer 1) Calculation of Depreciation expense using Straight Line Method Depreciation expense for…

Answered: Mountain View Resorts purchased…

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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Freedom Co. purchased a new machine on July 2, 2019, at a total installed cost of $48,000. The machine has an estimated life of five years and an estimated salvage value of $6,600. Required: a. Calculate the depreciation expense for each year of the asset's life using: 1. Straight-line depreciation. 2. Double-declining-balance depreciation. b. How much depreciation expense should be recorded by Freedom Co. for its fiscal year ended December 31, 2019, under each method? (Note: The machine will have been used for one-half of its first year of life.) c. Calculate the accumulated depreciation and net book value of the machine at December 31, 2020, under each method. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B Required C Calculate the depreciation expense for each year of the asset's life using Straight-line depreciation. Depreciation Expense Year 1 2 3 4 5
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