On January 1, 2021, we purchased equipment for $24,000 and paid $800 to have the equipment installed in your store. The equipment had an estimated salvage value of $2,000 and an estimated life of 10 years. The equipment was estimated to be able to operate 30,000 hours during its ten-year life. Actual hours of operation in the first three years were: 2,800 Hours 3,200 Нours 3,100 Hours 2021 2022 2023 How much total depreciation should be recorded over the entire ten-year life of the equipment? a. b. Calculate the depreciation expense (rounded to the nearest DOLLAR) for each of the first three years (2021, 2022, and 2023) assuming: (Please show your calculations) 1. Sum of the years' digits method of depreciation Straight line method of depreciation Service hours method of depreciation 175% declining balance method of depreciation 2. 3. 4. If this equipment had been purchased on April 1, 2021 instead of January 1, calculate the depreciation expense for 2021, 2022, and for 2023 (rounded to the nearest DOLLAR) under each of the methods in part b, assuming your company year ends on December 31. (Please show your calculations) с.

On January 1, 2021, we purchased equipment for $24,000 and paid $800 to have the equipment installed in your store. The equipment had an estimated salvage value of $2,000 and an estimated life of 10 years. The equipment was estimated to be able to operate 30,000 hours during its ten-year life. Actual hours of operation in the first three years were: 2,800 Hours 3,200 Нours 3,100 Hours 2021 2022 2023 How much total depreciation should be recorded over the entire ten-year life of the equipment? a. b. Calculate the depreciation expense (rounded to the nearest DOLLAR) for each of the first three years (2021, 2022, and 2023) assuming: (Please show your calculations) 1. Sum of the years' digits method of depreciation Straight line method of depreciation Service hours method of depreciation 175% declining balance method of depreciation 2. 3. 4. If this equipment had been purchased on April 1, 2021 instead of January 1, calculate the depreciation expense for 2021, 2022, and for 2023 (rounded to the nearest DOLLAR) under each of the methods in part b, assuming your company year ends on December 31. (Please show your calculations) с.

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Description: On January 1, 2021, we purchased equipment for $24,000 and paid $800 to have the equipmentinstalled in your store. The equipment had an estimated salvage value of $2,000 and anestimated life of 10 years. The equipment was estimated to be able to ope

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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