Required information [The following information applies to the questions displayed below.] On January 1, 2021, the Allegheny Corporation purchased equipment for $163,000. The estimated service life of the equipment is 10 years and the estimated residual value is $9,000. The equipment is expected to produce 236,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods.
Required information [The following information applies to the questions displayed below.] On January 1, 2021, the Allegheny Corporation purchased equipment for $163,000. The estimated service life of the equipment is 10 years and the estimated residual value is $9,000. The equipment is expected to produce 236,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please don't give image based answer..thanku
![Required information
[The following information applies to the questions displayed below.]
On January 1, 2021, the Allegheny Corporation purchased equipment for $163,000. The estimated service
life of the equipment is 10 years and the estimated residual value is $9,000. The equipment is expected
to produce 236,000 units during its life.
Required:
Calculate depreciation for 2021 and 2022 using each of the following methods.
3. Assume instead the equipment was purchased on October 1, 2021. Calculate depreciation for 2021 and 2022 using each
of the two methods. Partial-year depreciation is calculated based on the number of months the asset is in service. (Do not
round intermediate answers and round your answers to the nearest whole dollar amount.)
Sum-of-the-years' digits
One hundred fifty percent declining balance
$
$
2021
7,000
6,113
2022](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd4fb3069-3205-4768-a97a-1b3924eeeda6%2F6122c153-1920-4d8c-81af-0505294dcb8b%2Ffxuvtwa_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
On January 1, 2021, the Allegheny Corporation purchased equipment for $163,000. The estimated service
life of the equipment is 10 years and the estimated residual value is $9,000. The equipment is expected
to produce 236,000 units during its life.
Required:
Calculate depreciation for 2021 and 2022 using each of the following methods.
3. Assume instead the equipment was purchased on October 1, 2021. Calculate depreciation for 2021 and 2022 using each
of the two methods. Partial-year depreciation is calculated based on the number of months the asset is in service. (Do not
round intermediate answers and round your answers to the nearest whole dollar amount.)
Sum-of-the-years' digits
One hundred fifty percent declining balance
$
$
2021
7,000
6,113
2022
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