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Must use excel, using auto sum etc when necessary Diamond Autobody purchased some new equipment. The new equipment cost $90,000. The company estimates the equipment
Must use excel, using auto sum etc when necessary
Diamond Autobody purchased some new equipment. The new equipment cost $90,000. The company estimates the equipment will have a residual value of $10,000. Diamond also estimates it will use the equipment for eight years or about 5,000 total hours.
Required:
Prepare a depreciation schedule for eight years using the following methods:
1. Straight-line. 2. Double-declining-balance. 3. Activity-based. Actual use per year was as follows:
Year | Hours Used |
1 | 850 |
2 | 750 |
3 | 800 |
4 | 730 |
5 | 700 |
6 | 625 |
7 | 400 |
8 | 425 |
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