On January 1, a company purchased store equipment for $22,000. The company estimates that at the...
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On January 1, a company purchased store equipment for $22,000. The company estimates that at the end of its 10-year service life, the equipment will be worth $4,000. During the 10-year period, the company expects to use the equipment for a total of 15,000 hours. The company used the equipment for 1,600 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) 1. Straight-line. 2. Double-declining-balance. 3. Activity-based. On January 1, a company purchased store equipment for $22,000. The company estimates that at the end of its 10-year service life, the equipment will be worth $4,000. During the 10-year period, the company expects to use the equipment for a total of 15,000 hours. The company used the equipment for 1,600 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.) 1. Straight-line. 2. Double-declining-balance. 3. Activity-based.
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Answer rating: 100% (QA)
1 Straightline method The annual depreciation expense using the straightline method can be calculate... View the full answer
Related Book For
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
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