n March 31, 2024, Canseco Plumbing Fixtures purchased equipment for $58,000. Residual value at the end of an estimated four-year ervice life is expected to be $10,000. The company expects the equipment to operate for 15,000 hours. The equipment operated for ,600 and 4,400 hours in 2024 and 2025, respectively. Required: a. Calculate depreciation expense for 2024 and 2025 using straight-line method. b. Calculate depreciation expense for 2024 and 2025 using double-declining-balance method. c. Calculate depreciation expense for 2024 and 2025 using units-of-production using hours operated. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate depreciation expense for 2024 and 2025 using straight-line method. Straight-Line Depreciation Choose Numerator: Formula Amounts Beginning Book Value $ Year Annual Depreciation 2024 $ 2025 $ 48,000 + Choose Denominator: + Double the straight-line rate 12,000 x 12,000 * Fraction of Year 4 = Annual Depreciation = Annual Depreciation 3 $ 12,000 Depreciation Expense

n March 31, 2024, Canseco Plumbing Fixtures purchased equipment for $58,000. Residual value at the end of an estimated four-year ervice life is expected to be $10,000. The company expects the equipment to operate for 15,000 hours. The equipment operated for ,600 and 4,400 hours in 2024 and 2025, respectively. Required: a. Calculate depreciation expense for 2024 and 2025 using straight-line method. b. Calculate depreciation expense for 2024 and 2025 using double-declining-balance method. c. Calculate depreciation expense for 2024 and 2025 using units-of-production using hours operated. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate depreciation expense for 2024 and 2025 using straight-line method. Straight-Line Depreciation Choose Numerator: Formula Amounts Beginning Book Value $ Year Annual Depreciation 2024 $ 2025 $ 48,000 + Choose Denominator: + Double the straight-line rate 12,000 x 12,000 * Fraction of Year 4 = Annual Depreciation = Annual Depreciation 3 $ 12,000 Depreciation Expense

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Description: n March 31, 2024, Canseco Plumbing Fixtures purchased equipment for $58,000. Residual value at the end of an estimated four-yearervice life is expected to be $10,000. The company expects the equipment to operate for 15,000 hours. The equipment opera

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question

n March 31, 2024, Canseco Plumbing Fixtures purchased equipment for $58,000. Residual value at the end of an estimated four-year
ervice life is expected to be $10,000. The company expects the equipment to operate for 15,000 hours. The equipment operated for
600 and 4,400 hours in 2024 and 2025, respectively.
Required:
a. Calculate depreciation expense for 2024 and 2025 using straight-line method.
b. Calculate depreciation expense for 2024 and 2025 using double-declining-balance method.
c. Calculate depreciation expense for 2024 and 2025 using units-of-production using hours operated.
Complete this question by entering your answers in the tabs below.
Required A Required B Required C
Calculate depreciation expense for 2024 and 2025 using straight-line method.
Formula
Amounts
Year
2024
2025
Choose Numerator:
Beginning Book Value
$
Annual Depreciation
$
$
+ Double the straight-line rate
48,000+
x
Straight-Line Depreciation
12,000 x
12,000 x
Choose Denominator:
Fraction of Year
= Annual Depreciation
$
4 =
Annual Depreciation
=
12,000
Depreciation Expense

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