ABC Company purchased equipment on 30 June 2020: Cost $1 000 000 Estimated useful life 7...

 

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ABC Company purchased equipment on 30 June 2020: Cost $1 000 000 Estimated useful life 7 years Estimated salvage value $500 Productive life 12 000 hours Calculated depreciation expense for ABC Company for 2021 using activity method. Assume that this machine was used for 600 hours in 2020 and for 1300 hours in 2021. (1.5 points) Based on the information given in the previous question. Calculate depreciation expense for ABC Company using sum-of-the-years'-digits method for 2022. (1.5 points) Based on the information given in the previous question. Calculate depreciation expense for ABC Company using double-declining method for 2022. (1.5 points) ABC Company purchased equipment on 30 June 2020: Cost $1 000 000 Estimated useful life 7 years Estimated salvage value $500 Productive life 12 000 hours Calculated depreciation expense for ABC Company for 2021 using activity method. Assume that this machine was used for 600 hours in 2020 and for 1300 hours in 2021. (1.5 points) Based on the information given in the previous question. Calculate depreciation expense for ABC Company using sum-of-the-years'-digits method for 2022. (1.5 points) Based on the information given in the previous question. Calculate depreciation expense for ABC Company using double-declining method for 2022. (1.5 points)

Answer rating: 100% (QA)

To calculate the depreciation expense for ABC Company for 2021 using the activity method we need to determine the depreciation per hour and multiply i... View the full answer