On October 1, 2024, the Allegheny Corporation purchased equipment for $332,000. The estimated service life of...

 

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On October 1, 2024, the Allegheny Corporation purchased equipment for $332,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 550,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 1 1. Straight-line. Straight-Line Depreciation Choose Numerator: ÷ Choose Denominator: Annual Depreciation Formula Cost minus Residual + Estimated Useful Life (years) = Annual Depreciation Amounts $ 132,000 + 10 = $ 13,200 Year Annual Depreciation X Fraction of Year Depreciation expense 2024 $ 13,200 × 3/12 = 2025 $ 13,200 × 12/12 On October 1, 2024, the Allegheny Corporation purchased equipment for $332,000. The estimated service life of the equipment is 10 years and the estimated residual value is $2,000. The equipment is expected to produce 550,000 units during its life. Required: Calculate depreciation for 2024 and 2025 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. Exercise 11-3 (Algo) Part 1 1. Straight-line. Straight-Line Depreciation Choose Numerator: ÷ Choose Denominator: Annual Depreciation Formula Cost minus Residual + Estimated Useful Life (years) = Annual Depreciation Amounts $ 132,000 + 10 = $ 13,200 Year Annual Depreciation X Fraction of Year Depreciation expense 2024 $ 13,200 × 3/12 = 2025 $ 13,200 × 12/12

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To calculate the depreciation for 2024 and 2025 using the straightline method we need to use the f... View the full answer