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Here is the information relating to the equipment of the company Production Inc: Purchase on January 1 X5 $ 100,000 Estimated useful life 5 years
Here is the information relating to the equipment of the company Production Inc:
Purchase on January 1 X5 $ 100,000 Estimated useful life 5 years Estimated residual value $ 10,000 Total hours of intended use 10,000 hours Number of hours of use in X5 3,000 hours Number of hours of use in X6 2,500 hours Declining balance rate 35% If the Production company used the declining balance method for its equipment, the depreciation expense for year X5 would amount to:
a) None of the above b) $ 22,750 c) 20,475 d) $ 31,500 e) $ 35,000
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