Question

On January 3, 2014, Xenex Innovations purchased computer equipment for $125,250. The equipment will be used in research and development activities for five years or a total of 8,500 hours and then sold for about $19,000. Prepare a schedule with headings as shown below. Calculate depreciation and book values for each year of the equipment’s life for each method of depreciation. Xenex’s year-end is December 31.


*Assume actual usage in hours of:
2014 ........................ 1,350
2015 ........................ 1,780
2016 ........................ 2,400
2017 ........................ 2,980
2018 ........................ 2,700

Analysis Component: Which method will result in the greatest:
a. Total assets being reported on the balance sheet in 2014? In 2017?
b. Operating expenses being reported on the income statement in 2014? In2017?


$1.99
Sales2
Views107
Comments0
  • CreatedJanuary 08, 2015
  • Files Included
Post your question
5000