Question
On January 1, 2013, Canseco Plumbing Fixtures purchased equipment for $58,000. Residual value at the end of an estimated four-year service life is expected to
On January 1, 2013, Canseco Plumbing Fixtures purchased equipment for $58,000. Residual value at the end of an estimated four-year service life is expected to be $10,000. The company expects the machine to operate for 15,000 hours. The machine operated for 3,600 and 4,400 hours in 2013 and 2014, respectively. |
a. | Calculate depreciation expense for 2013 and 2014 using straight line method. |
b. | Calculate depreciation expense for 2013 and 2014 using sum-of-the-years'-digits method. |
c. | Calculate depreciation expense for 2013 and 2014 using double-declining balance method. |
d. | Calculate depreciation expense for 2013 and 2014 using units-of-production method. |
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