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Need computation thanks At the start of fiscal 2020, Bershire Inc. purchased a dental imaging system at a cost of $ 440,000. She plans to
Need computation thanks
At the start of fiscal 2020, Bershire Inc. purchased a dental imaging system at a cost of $ 440,000. She plans to use this equipment for 6 years before replacing it. Bershire inc. would then be able to resell the equipment for around $ 20,000. The equipment's instruction manual states that it can operate for 80,000 hours. In fiscal 2020, the equipment was used for 10,000 hours. Bershire inc. plans to use the equipment for 12,000 hours in fiscal 2021. Questions: 1- If the company opts for the functional depreciation method upon acquisition, what will be the depreciation expense for fiscal year 2020? 2- If the company had instead opted for the declining balance method at a constant rate of 25% upon acquisition, what would be the depreciation expense for fiscal year 2021? 3- If the company had instead opted for the straight-line depreciation method upon acquisition, what would the depreciation expense be for fiscal year 2022 Step by Step Solution
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