On January 1, Buy More Grocerles purchased store equipment for$20,500. Buy More estimates that at the end of its 10 year service life, the equipment will be worth $2,500. During the 10-year period, the company expects to use the equipment for a total of 12,000 hours. Buy More used the equipment for 1,580 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) 1. Straight-line. 2. Double-declining-balance 3. Activity-based .
On January 1, Buy More Grocerles purchased store equipment for$20,500. Buy More estimates that at the end of its 10 year service life, the equipment will be worth $2,500. During the 10-year period, the company expects to use the equipment for a total of 12,000 hours. Buy More used the equipment for 1,580 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) 1. Straight-line. 2. Double-declining-balance 3. Activity-based .
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, Buy More Grocerles purchased store equipment for$20,500. Buy More estimates that at the end of its 10 year service life, the equipment will be worth $2,500. During the 10-year period, the company expects to use the equipment for a total of 12,000 hours. Buy More used the equipment for 1,580 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.)
1. Straight-line.
2. Double-declining-balance
3. Activity-based .
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