Rhymer Company purchased plastic laminating equipment on July 1, 2005, for $174,000. The equipment was expected to

Question:

Rhymer Company purchased plastic laminating equipment on July 1, 2005, for $174,000. The equipment was expected to have a useful life of three years, or 14,025 operating hours, and a residual value of $5,700. The equipment was used for 2,500 hours during 2005, 5,500 hours in 2006, 4,025 hours in 2007, and 2,000 hours in 2008.

Instructions
Determine the amount of depreciation expense for the years ended December 31, 2005, 2006, 2007, and 2008, by
(a) The straight-line method,
(b) The units-of-production method, and
(c) The declining-balance method, using twice the straight-line rate. Round to the nearest dollar.


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Related Book For  book-img-for-question

Financial Accounting An Integrated Statements Approach

ISBN: 978-0324312119

2nd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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