Answered step by step
Verified Expert Solution
Question
1 Approved Answer
MUST SHOW WORK Compare Three Depreciation Methods Plum Coatings Company purchased waterproofing equipment on January 2, 2011, for $450,000. The equipment was expected to have
MUST SHOW WORK
Compare Three Depreciation Methods Plum Coatings Company purchased waterproofing equipment on January 2, 2011, for $450,000. The equipment was expected to have a useful life of four years, or 10,000 operating hours, and a residual value of $50,000. The equipment was used for 3,000 hours during 2011, 4,000 hours in 2012, 2,500 hours in 2013, and 500 hours in 2014. Instructions: 1. Determine the amount of depreciation expense for the years ended December 31, 2011, 2012, 2013, and 2014, by the Straight-Line Method the Units-of-Production Method and the Double-Declining-Balance Method Also determine the total depreciation expense for the four years by each method. Depreciation Expense Year Straight-Line Method Units-of-Production Method Double-Declining-Balance Method 2011 2012 2013 2014 Total 2. What method yields the highest depreciation expense for 2011? 3. What method yields the most depreciation over the four-year life of the equipmentStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started