Wollongong Constructions Ltd purchased new building equipment on 1 January 2022, at a cost of $442,500. The

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Wollongong Constructions Ltd purchased new building equipment on 1 January 2022, at a cost of $442,500.

The accountant estimated the building equipment would have a useful life of 5 years and a residual value of $25,000:

Required

a) Calculate the amount of depreciation expense for the years ending 30 June 2022 and 30 June 2023, using the following methods:

Straight-line.
Diminishing balance.

b) Discuss how the units of production method for depreciation differs from the straight line and diminishing balance methods?

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0324312140

16th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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Posted Date: Feb 16, 2023 06:50 AM

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Wollongong Constructions Ltd purchased new building equipment on 1 January 2022, at a cost of $442,500. The

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Expert Answer:

a Depreciation expense for the years ending 30 June 2022 and 30 June 2023 using the straightline method The straightline method calculates depreciatio... View the full answer

Intermediate Accounting

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