Refer to the situation described in BE 11–2. Assume the equipment was purchased on March 31, 2021, instead of January 1. Calculate depreciation expense for 2021 and 2022 using each of the following depreciation methods: (1) straight line, (2) double-declining balance, and (3) units-of-production using hours operated.

BE 11–2

On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $30,000. Residual value at the end of an estimated four-year service life is expected to be $2,000. The company expects the equipment to operate for 10,000 hours. Calculate depreciation expense for 2021 and 2022 using each of the following depreciation methods:

1. Straight line, 

2. Double-declining balance,

3. Units-of-production using hours operated. The equipment operated for 2,200 and 3,000 hours in 2021 and 2022, respectively.