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12. Providence Medical Center bought equipment on January 2, 2013, for $15,000. The equipment was ex remain in service for four years and to perform
12. Providence Medical Center bought equipment on January 2, 2013, for $15,000. The equipment was ex remain in service for four years and to perform 1,000 surgeries. At the end of the equipment's useful life, Providence estimates that its residual value will be $3,000. The equipment performed 100 surgeries the first year, 300 the second year, 400 the third year, and 200 the fourth year. Prepare a sched under the three methods. to ule of depreciation expense per year for the equipment Straight-linse Year 1: Year 2: Year 3: Year 4: Units of Production Year 1: Year 2: Year 3: Year 4: Double Declining Balance Year 1: Year 2: Year 3: Year 4 13. Stagecoach Van Lines purchased a building for $700,000 and depreciated it on a straight-ine basis for over a 40-year period. The estimated salvage value was $100,000. After using the building for 15 years, Stagecoach realized that wear an tear on the building would force the company to replace it before 40 years. Starting with the 16th year, Stagecoach began depreciating the building over a revised total life of 30 years and increased the estimated salvage value to $175,000. Record depreciation expense on the building for years 15 and 16. Year 15: Year 16
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