Question: Please review my calculation A , B and please help with C, also correct if there is wrong. Thank you On January 1, 2021, Canseco

Please review my calculation A , B and please help with C, also correct if there is wrong. Thank you

On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $44,000. Residual value at the end of an estimated four-year service life is expected to be $8,000. The company expects the equipment to operate for 20,000 hours. The equipment operated for 2,900 and 3,700 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.

Calculate depreciation expense for 2021 and 2022 using straight-line method.

Straight-Line Depreciation
Choose Numerator: / Choose Denominator: = Annual Depreciation Expense
Formula Cost minus Residual / Estimated Useful Life (years) = Depreciation Expense
Amounts $36,000 / 4 = $9,000
Depreciation Expense
2021 $6,750
2022 $9,000

Calculate depreciation expense for 2021 and 2022 using double-declining-balance method.

Double-Declining-Balance Method
Choose Numerator: Choose Denominator: = Depreciation Expense
Formula Beginning Book Value Straight-line Rate = Depreciation Expense
Amount for 2021 $44,000 50 % = $22,000
Amount for 2022 $22,000 50 % = $33,000
  • Calculate depreciation expense for 2021 and 2022 using units-of-production using hours operated. (Round "Depreciation per machine hour" answers to 2 decimal places.)

    Select formula for Units of Production Depreciation:
    Calculate 2021 depreciation expense:
    Depreciation per machine hour
    Machine hours in 2021
    Depreciation in 2021
    Calculate 2022 depreciation expense:
    Depreciation per machine hour
    Machine hours in 2022
    Depreciation in 2022

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