On January 1 of 2020, Miners, Inc. bought a backhoe for $75,000. The backhoe is estimated to last 5 years. Miners, Inc. expects to use it for 5,000 hours during its lifetime. The salvage value of this backhoe is estimated to be $8,000 at the end of the 5 years. During 2020, Miners, Inc used the backhoe for 1,500 hours and in 2021, the company used the backhoe for 800 hours. Required: Calculate the amount of depreciation expense for 2020 AND 2021 under each of the following separate depreciation methods. (4 points each)
On January 1 of 2020, Miners, Inc. bought a backhoe for $75,000. The backhoe is estimated to last 5 years. Miners, Inc. expects to use it for 5,000 hours during its lifetime. The salvage value of this backhoe is estimated to be $8,000 at the end of the 5 years. During 2020, Miners, Inc used the backhoe for 1,500 hours and in 2021, the company used the backhoe for 800 hours. Required: Calculate the amount of depreciation expense for 2020 AND 2021 under each of the following separate depreciation methods. (4 points each)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1 of 2020, Miners, Inc. bought a backhoe for $75,000. The backhoe is estimated to last 5 years. Miners, Inc. expects to use it for 5,000 hours during its lifetime. The salvage value of this backhoe is estimated to be $8,000 at the end of the 5 years. During 2020, Miners, Inc used the backhoe for 1,500 hours and in 2021, the company used the backhoe for 800 hours.
Required: Calculate the amount of
Transcribed Image Text:Straight-Line Method
Units of production method
Double declining balance method
2020
2021
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