ACC 112 Project 1A

On January 1, 2016, Nicholas Company purchased Office Equipment for $279,000 with an estimated useful life of 10 years, or 325,000 hours and a residual value of $19,000. Compute the annual depreciation at the end of 2018, the 3rd year, under each of the following depreciation method for Nicholas Company:

1)		Straight-Line Method
2)		Units of Production Method, assume that a total of 70,000 hours were used in 2018.
3)		Double-Declining Balance Method

Using the Straight-Line Depreciation Method, calculate the amount of depreciation taken in 2018. Using the Units of Production Depreciation Method, calculate the Depreciation Cost per Hour and the amount of depreciation taken in 2018. (Round answers to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) Using the Double-Declining Balance Depreciation Method, calculate the Double-Declining Balance (DDB) Rate then complete the table below for the years 2016 through 2018. (Round answers to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.)