Question: On January 1 2013 Canseco Plumbing Fixtures purchased equipment for

On January 1, 2013, Canseco Plumbing Fixtures purchased equipment for $30,000. Residual value at the end of an estimated four-year service life is expected to be $2,000. The company expects the machine to operate for 10,000 hours. Calculate depreciation expense for 2013 and 2014 using each of the following depreciation methods:
(a) Straight line,
(b) Sum-of-the-years’-digits,
(c) Double-declining balance,
(d) Units-of-production using machine hours.
The machine operated for 2,200 and 3,000 hours in 2013 and 2014, respectively.


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  • CreatedDecember 23, 2013
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