2.

On March 31, 2018, Canseco Plumbing Fixtures purchased equipment for $32,000. Residual value at the end of an estimated four-year service life is expected to be $8,000. The company expects the machine to operate for 20,000 hours.

a. Calculate depreciation expense for 2018 and 2019 using straight line method. b. Calculate depreciation expense for 2018 and 2019 using sum-of-the-years-digits method. c. Calculate depreciation expense for 2018 and 2019 using double-declining balance method.

A.

Calculate depreciation expense for 2018 and 2019 using straight line method.

Straight-Line Depreciation
	Choose Numerator:	/	Choose Denominator:	=	Annual Depreciation
	?	/	?	=	Annual Depreciation
	?	/	?	=	?
Year	Annual Depreciation	x	Fraction of Year	=	Depreciation Expense
2018		x	?	=	?
2019		x	?	=	?

B. Calculate depreciation expense for 2018 and 2019 using sum-of-the-years-digits method.

Sum-of-the-years' digits depreciation
	Depreciable Base	x	Rate per Year	x	Fraction of Year	=	Depreciation Expense
4/1/2018 through 12/31/2018	?	x	?	x	?	=	?
Total depreciation expense - 2018
1/1/2019 through 3/31/2019		x	?	x	?	=	?
4/1/2019 through 12/31/2019		x	?	x	?	=	?
Total depreciation expense - 2019

C. Calculate depreciation expense for 2018 and 2019 using double-declining balance method.

	Depreciation for the Period				End of Period
Annual Period	Beginning of Period Book Value	Depreciation Rate	Fraction of Year	Depreciation Expense	Accumulated Depreciation	Book Value
2016	?	?	?	?
2017	?	?	?	?