Wildhorse Co. purchased equipment for $144,000 on January 1, 2021. It is estimated that the equipment will
Question:
Wildhorse Co. purchased equipment for $144,000 on January 1, 2021. It is estimated that the equipment will have a scrap value of US$8,000 at the end of its 5-year useful life. It is also estimated that the equipment will produce 160,000 units over its 5-year lifespan. Calculate the depreciation expense amount for the year ended December 31, 2021 using the straight-line depreciation method? If 16,000 units are produced in 2021 and 24,000 units in 2022, what is the book value of the equipment on December 31, 2022? Does the company use the depreciation method by operating units? If the company uses the double declining balance method for depreciation, what is the balance of the Accumulated Depreciation—Hardware account as of December 31, 2023?
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso