Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Depreciation by three methods; partial years Layton Company purchased tool sharpening equipment on October 1 for $ 4 6 , 7 1 0 . The

Depreciation by three methods; partial years
Layton Company purchased tool sharpening equipment on October 1 for $46,710. The equipment was expected to have a useful life of 3 years or 4,320 operating hours, and a residual value of $1,350. The equipment was used for 800 hours during Year 1,1,500 hours in Year 2,1,300 hours in Year 3, and 720 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method.
Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.
a. Straight-line method
Year Amount
Year 1 $
Year 2 $
Year 3 $
Year 4 $
b. Units-of-activity method
Year Amount
Year 1 $
Year 2 $
Year 3 $
Year 4 $
c. Double-declining-balance method
Year Amount
Year 1 $
Year 2 $
Year 3 $
Year 4 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Cases An Interactive Learning Approach

Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt

7th Edition

9780134421827

Students also viewed these Accounting questions

Question

What does stickiest refer to in regard to social media

Answered: 1 week ago