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Depreciation by Three Methods; Partial Years Security IDs Company purchased equipment on July 1, 2010, for $135,000. The equipment was expected to have a useful
Depreciation by Three Methods; Partial Years Security IDs Company purchased equipment on July 1, 2010, for $135,000. The equipment was expected to have a useful life of three years, or 12,000 operating hours, and a residual value of $6,000. The equipment was used for 1,500 hours during 2010, 3,500 hours in 2011, 5,000 hours in 2012, and 2,000 hours in 2013. Instructions: 1. Determine the amount of depreciation expense for the years ended December 31, 2010, 2011, 2012, and 2013, by (a) the straight-line method, (b) the units-of-production method, and (c) the double-declining-balance method. Do not round your intermediate calculations but round final answers to the nearest dollar. a. Straight-line method Year Amount 2010 $ ______ 2011 $______ 2012 $_______ 2013 $_____ b. Units-of-production method Year Amount 2010 $______ 2011 $_______ 2012 $________ 2013 $__________ c. Double-declining-balance Method Year Amount 2010 $_________ 2011 $_________ 2012 $_________ 2013 $__________
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