Question
Calculate depreciation using Straight-line method , diminishing-balance method using double the straight-line rate & Units of production method Exercise 9-3 (Part Level Submission) Nissong Ltd.
Calculate depreciation using Straight-line method, diminishing-balance method using double the straight-line rate & Units of production method
Exercise 9-3 (Part Level Submission)
Nissong Ltd. purchased a new extraction device on April 4, 2012, at a cost of $187,200. The company estimated that the extraction device would have a residual value of $17,760. The extraction device is expected to be used for 9,520 working hours during its four-year life. Actual extraction device usage was 540 hours in 2012; 2,570 hours in 2013; 2,810 hours in 2014; 2,450 hours in 2015; and 1,150 hours in 2016. Nissong has a December 31 year end.
Calculate depreciation for the extraction device under each of the following methods: (Round expense per unit to 2 decimal places, e.g. 2.75 and final answers to 0 decimal places, e.g. 5,275.)
(1) Straight-line method. 2012 expenses 2013 expense $ 2014 expense s 2015 expense $ 2016 expenses (2) Diminishing-balance method using double the straight-line rate. 2012 expense s 2013 expense $ 2014 expense s 2015 expense $ 2016 expensesStep by Step Solution
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