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 to Expert-Tailored 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

Cost Accounting

Authors: James A. Cashin, Ralph S. Polimeni, Sheila Handy

3rd Edition

0070110263, 9780070110267

More Books

Students also viewed these Accounting questions

Question

Distinguish between the manifest and latent content of dreams.

Answered: 1 week ago