Question
Moore, Inc. purchased slot machines at the beginning of 2015 for $20,000. The machines have an estimated residual value of $2,000 and an estimated life
Moore, Inc. purchased slot machines at the beginning of 2015 for $20,000. The machines have an estimated residual value of $2,000 and an estimated life of 5 years or 20,000 hours of operation. Moore is looking at alternative depreciation methods for the equipment. Calculate the following:
A. Accumulated depreciation at December 31, 2016, using the straight-line depreciation method
B. Depreciation expense for 2015 using the units-of-production depreciation method. Assume that the machines are operated for 5,000 hours in 2015 and 2,000 hours in 2016
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