Question
Newbirth Coatings Company purchased waterproofing equipment on January 2, 2009, for $682,000. The equipment was expected to have a useful life of four years, or
Newbirth Coatings Company purchased waterproofing equipment on January 2, 2009, for $682,000. The equipment was expected to have a useful life of four years, or 6,800 operating hours, and a residual value of $56,400. The equipment was used for 2,600 hours during 2009, 2,100 hours in 2010, 1,200 hours in 2011, and 900 hours in 2012.
Determine the amount of depreciation expense for the years ended December 31, 2009, 2010, 2011, and 2012, by (a) the straight-line method, (b) the units-of-production method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Do not round your intermediate calculations. Enter all amounts positive numbers.
Straight Line Units of Production Double-Declining Method
2009 34100
2010 170500
2011 85250
2012
Total:
Help Please!~!!
Step 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