The company purchased the equipment on October 1, 20X1 for $100,000, and estimated that the equipment will use for 5 years and has a residual value of $2,000. The equipment has the following capacity: 10,000 service hours.  December 31 is the reporting date.  The equipment provided 700 and 2,300 service hours in 20X1 and 20X2, respectively.      Calculate depreciation expense for 20X1 and 20X2 using different methods in the following table     Straight-line Double-declining-balance Activity method 20X1       20X2

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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  1. The company purchased the equipment on October 1, 20X1 for $100,000, and estimated that the equipment will use for 5 years and has a residual value of $2,000. The equipment has the following capacity: 10,000 service hours.  December 31 is the reporting date.  The equipment provided 700 and 2,300 service hours in 20X1 and 20X2, respectively. 

 

 

Calculate depreciation expense for 20X1 and 20X2 using different methods in the following table

 

 

Straight-line

Double-declining-balance

Activity method

20X1

 

 

 

20X2

 

 

 

 

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