Question
On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of $24,600. The drill press is expected to last 10 years
On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of $24,600. The drill press is expected to last 10 years and has a residual value of $5,400. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2018 and 2019, 22,000 and 78,000 units, respectively, were produced.
1. Compute depreciation for 2018 and 2019 and the book value of the drill press at December 31, 2018 and 2019, assuming the double-declining-balance method is used.
2018 2019
Depreciation
Book values
2. Compute depreciation for 2018 and 2019 and the book value of the drill press at December 31, 2018 and 2019, assuming the sum-of-the-years'-digits method is used.
2018 2019
Depreciation
Book values
3. Compute depreciation for 2018 and 2019 and the book value of the drill press at December 31, 2018 and 2019, assuming the units-of-production method is used.
2018 2019
Depreciation
Book values
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Accounting Audits In The Democratic Republic Of Congo
Authors: Charles Kyungu Kakudji
1st Edition
6206327043, 978-6206327042
