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On January 1, 2017, ABC Company purchased equipment costing $10,000,000, and its residual value is $2,000,000. The estimated useful life of the asset is 8
On January 1, 2017, ABC Company purchased equipment costing $10,000,000, and its residual value is $2,000,000. The estimated useful life of the asset is 8 years. Further, management expects to use the equipment for 4,000 hours over its life. In 2017 the equipment was used for 500 hours, and in 2018 the equipment was used for 1,500 hours.
Compute depreciation for calendar years 2017 AND 2018 under the following methods:
Straight line
Double declining
Units of activity
Sum-of-the-years digits
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