Question: A printing press acquired at a cost of 880 000 has

A printing press acquired at a cost of $880,000 has an estimated useful life of 10 years, or 75,000 hours, and an expected residual value of $40,000. The press was put into operation on May 21, 2013. Determine the depreciation for 2013 and 2014 by
(a) The straight-line method,
(b) The double-declining-balance method,
(c) The unit-of-production method, assuming the press operated for 3,000 hours in 2013 and 7,000 hours in 2014. The company has a December 31 year-end. Show the balance sheet presentation for the printing press for 2013 and 2014, using the units-of-production method.

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  • CreatedSeptember 15, 2015
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