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Kiwi company purchased equipment for $950,000 on 1st of January 2020. The equipment was expected to have useful life of 10 years, or 25,000 operating
Kiwi company purchased equipment for $950,000 on 1st of January 2020. The equipment was expected to have useful life of 10 years, or 25,000 operating hours, and residual value of $50,000. The equipment was used for 3000 hours during 2020, 2600 hours during 2021, and 4000 hours in 2022. Kiwi company is working on a calendar-year basis ending December 31.
Required:
1. Determine the amount of depreciation expense for the year ended December 31, 2021 by the
straight-line method.
2. Determine the amount of accumulated depreciation at December 31, 2022 by the units of
output method.
3. Whats the back la point he equipment December 3, 2020 by the double-declining-balance
method?
with step by step explanation plz
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