Question

Diamond Autobody purchased some new equipment. The new equipment cost $90,000. The company estimates the equipment will have a residual value of $10,000. Cheetah Copy also estimates it will use the equipment for four years or about 5,000 total hours.

Required:
Prepare a depreciation schedule for three years using the following methods:
1. Straight-line.
2. Double-declining-balance.
3. Activity-based. Actual use per year was as follows:
Year Hours Used
1 ........ 1,200
2 ........ 1,400
3 ........ 1,500
4 ........ 1,100


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  • CreatedJuly 15, 2014
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