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An asset was bought at $160,000 and has an estimated salvage value of $18.000. It is expected to have a useful life of 6 years,
An asset was bought at $160,000 and has an estimated salvage value of $18.000. It is expected to have a useful life of 6 years, a production of 220,000 units, and working hours of 26,000. During the first year of usage, the company used the asset for 3,222 hours to produce 22,334 units. Calculate the book depreciation for year 1 using the units-of-production method. Calculate the book depreciation for year 1 using the working hours method. In the following tables, D, means the depreciation in period n and By means the book value of the asset at the end of period n. Complete the table using the straight-line method to calculate the depreciation of this n Dn . 2 4 5 6 Complete the table using the Double declining balance (DDB) method to calculate the depreciation of this asset. n Da B 2 4 5 6
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