On January 3, 2020, Xenex Innovations purchased computer equipment for $145,000. The equipment will be used in research and development activities for five years or a total of 10,000 hours and then sold for about $24,000. Assume actual usage in hours of: 2020 2021 2022 2023 3,080 2024 1,850 1,880 3,400 3,700 Required: Calculate depreciation expense and book values for each year of the equipment's life for each method of depreciation using the table provided below. Xenex's year-end is December 31. (Do not round intermediate calculations.) Double Declining-Balance Book Value at December 31 Straight-Line Units-of-Producdion Depreciation Expenas Depreciation Book Value at Depreciation December 31 Book Value at December 31 Year Expense Expense 2020 2021 2022 2023 2024
On January 3, 2020, Xenex Innovations purchased computer equipment for $145,000. The equipment will be used in research and development activities for five years or a total of 10,000 hours and then sold for about $24,000. Assume actual usage in hours of: 2020 2021 2022 2023 3,080 2024 1,850 1,880 3,400 3,700 Required: Calculate depreciation expense and book values for each year of the equipment's life for each method of depreciation using the table provided below. Xenex's year-end is December 31. (Do not round intermediate calculations.) Double Declining-Balance Book Value at December 31 Straight-Line Units-of-Producdion Depreciation Expenas Depreciation Book Value at Depreciation December 31 Book Value at December 31 Year Expense Expense 2020 2021 2022 2023 2024
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:On January 3, 2020, Xenex Innovations purchased computer equipment for $145,000. The equipment will be used in
research and development activities for five years or a total of 10,000 hours and then sold for about $24,000.
Assume actual usage in hours of:
2020
2021
1,880
2022
2023
3,080
2024
3,700
1,850
3,400
Required:
Calculate depreciation expense and book values for each year of the equipment's life for each method of depreciation
using the table provided below. Xenex's year-end is December 31. (Do not round intermediate calculations.)
Double-Declining Balance
Depreciation Book Value at Depreclation Book Valuw t Depreciation Book Value at
Straight-Line
Units-of-Production
Year
Expense
December 31
December 31
Expenas
Decamber 31
Expense
2020
2021
2022
2023
2024
Transcribed Image Text:a. Total assets being reported on the balance sheet in 2020? in 2023?
Depreciation Method
2020
2023
b. Operating expenses being reported on the income statement in 2020? in 2023?
Depreclation Mathod
2020
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