Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can you answer this question? Brook Company purchased equipment on January 1, 2019 for $96,000. It is estimated that the equipment will have a $6,000
can you answer this question?
Brook Company purchased equipment on January 1, 2019 for $96,000. It is estimated that the equipment will have a $6,000 residual value at the end of its 5-year useful life. It is also estimated that the equipment will produce 60,000 units over its 5-year life.
Instructions
Answer the following independent questions.
If 8,000 units of product are produced in 2019 and 11,000 units are produced in 2020, and the company uses the units-of-activity depreciation method, what are the depreciation expenses for 2019 and 2020, and the book value of the equipment at the end of 2020?
If the company uses the double-declining-balance method of depreciation, what are the depreciation expenses for 2019, 2020, and 2021?
Compute the amount of depreciation expense for the year ended December 31, 2019, using the straight-line method of depreciation.
On January 1, 2020, the company decided that the equipment has a remaining useful life of 8 years with a $2,000 residual value. Compute the revised annual depreciation expense using the straight-line method of depreciation.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started