On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $52,000. Residual value at the end of
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Question:
On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $52,000. Residual value at the end of an estimated four-year service life is expected to be $4,000. The company expects the equipment to operate for 12,000 hours. The equipment operated for 3,300 and 4,100 hours in 2021 and 2022, respectively.
Required:
a. Calculate depreciation expense for 2021 and 2022 using straight-line method.
b. Calculate depreciation expense for 2021 and 2022 using double-declining-balance method.
c. Calculate depreciation expense for 2021 and 2022 using units-of-production using hours operated.
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson, Wayne Thomas
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