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Cero Company purchased waterproofing equipment on January 2, 2005, for $214,000. The equipment was expected to have a useful life of four years, or 31,250
Cero Company purchased waterproofing equipment on January 2, 2005, for $214,000. The equipment was expected to have a useful life of four years, or 31,250 operating hours, and a residual value of $14,000. The equipment was used for 10,750 hours during 2005, 9,500 hours in 2006, 6,000 hours in 2007, and 5,000 hours in 2008.
Instructions
Determine the amount of depreciation expense for the years ended December 31, 2005, 2006, 2007 and 2008, by
(a) The straight-line method,
(b) The units-of-production method, and
(c) The declining-balance method,
Using twice the straight-line rate. Also determine the total depreciation expense for the four years by each method. The following columnar headings are suggested for recording the depreciation expense amounts:
Instructions
Determine the amount of depreciation expense for the years ended December 31, 2005, 2006, 2007 and 2008, by
(a) The straight-line method,
(b) The units-of-production method, and
(c) The declining-balance method,
Using twice the straight-line rate. Also determine the total depreciation expense for the four years by each method. The following columnar headings are suggested for recording the depreciation expense amounts:
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