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Here are the charts that can be used for the: Straight-line method, Double-declining-balance method and the Activity-based method. Diamond Autobody purchased new equipment for $90,000.
Here are the charts that can be used for the: Straight-line method, Double-declining-balance method and the Activity-based method.
Diamond Autobody purchased new equipment for $90,000. Residual value at the end of an estimated four-year service life is expected to be $10,000. During the four-year period, the company expects to use the equipment a total of 5,000 hours Required: Prepare a depreciation schedule for the four-year life of the equipment using the following methods: 1. Straight-line. 2. Double-declining-balance. 3. Activity-based. Actual use per year was as follows: 1 Year Hours Used 1,200 2 1,400 3 1,500 4 1.100 Straight Line Year Depreciable Amount Depreciation Rate Depreciation Expense Accumulated Depreciation Book Value 2 3 4 Double-Declining Balance Depreciable Year Amount Depreciation Rate Depreciation Expense Accumulated Depreciation Book Value 2 3 4 Activity-Based Year Depreciable Amount Depreciation Rate Depreciation Expense Accumulated Depreciation Book Value 1 2 3 4Step by Step Solution
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