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8.On December 1, 2018 Safe Consulting Inc. (SCD purchased heavy construction equipment for $1,000, and an additional $2000 in shipping insurance. SCI expects that the
8.On December 1, 2018 Safe Consulting Inc. (SCD purchased heavy construction equipment for $1,000, and an additional $2000 in shipping insurance. SCI expects that the equipment at the end of its 6 year life will be $200,000 and expects that equipment will operate for a total of 80,000 equipment working hours. years ended December 31, 2018 and December 31, 2019 are 6000 and 14000, respectively. (8 000. SCI paid $6000 in transport fees to transport the machine to its place of business residual value of the Actual equipment working hours used for the marks) Required a) Using the straight line method of depreciation, compute the depreciation expense for the years ended December 31, 2018 and December 31,2019. Depreciation Expense for Dec 31, 2018 S Dec 31, 2019s b) Using the units of production method of depreciation, compute the depreciation expense for the years ended December 31, 2018 and December 31, 2019. Depreciation Expense for Dec 31, 2018 $ Dec 31, 2019 S What is the book value of the heavy construction equipment at December 31,201 Decem depreciation? c) ber 31, 2019 using the straight line method and the units of production method of 8 and Straight line Book Value as at December 31, 2018 s Units of Production Book Value as at December 31, 2018 S December 31,2019 S December 31, 2019 S
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