PROBLEM 3 Green Vegetable Mfg. Co. purchased equipment on January 1, 2019, at a cost of $800,000. The equipment is expected to have a service life of ten years, or 40,000 hours, and a residual value of $70,000. During 2019, the equipment was operated for 5,000 hours, and during 2020, it was operated for 7,000 hours. Required: Calculate depreciation expense (to the nearest whole dollar) for this machine in 2019 and 2020 under each of the following depreciation methods: *Straight-line method *Activity method (hours) *Double declining balance method
PROBLEM 3 Green Vegetable Mfg. Co. purchased equipment on January 1, 2019, at a cost of $800,000. The equipment is expected to have a service life of ten years, or 40,000 hours, and a residual value of $70,000. During 2019, the equipment was operated for 5,000 hours, and during 2020, it was operated for 7,000 hours. Required: Calculate depreciation expense (to the nearest whole dollar) for this machine in 2019 and 2020 under each of the following depreciation methods: *Straight-line method *Activity method (hours) *Double declining balance method
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...
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PROBLEM 3
Green Vegetable Mfg. Co. purchased equipment on January 1, 2019, at a cost of $800,000. The equipment is expected to have a service life of ten years, or 40,000 hours, and a residual value of $70,000. During 2019, the equipment was operated for 5,000 hours, and during 2020, it was operated for 7,000 hours.
Required:
Calculate
*Straight-line method
*Activity method (hours)
*Double declining balance method
Input only the answer on the Excel Template file. You may work calculations by hand on paper or in Excel. Your choice.
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