On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $60,000. Residual value at the end of an estimated four-year service life is expected to be $12,000. The company expects the equipment to operate for 20,000 hours. The equipment operated for 3,700 and 4,500 hours in 2021 and 2022, respectively.

Required: a. Calculate depreciation expense for 2021 and 2022 using straight-line method. b. Calculate depreciation expense for 2021 and 2022 using double-declining-balance method. c. Calculate depreciation expense for 2021 and 2022 using units-of-production using hours operated.

• Required A

Calculate depreciation expense for 2021 and 2022 using straight-line method.

Straight-Line Depreciation
	Choose Numerator:	/	Choose Denominator:	=	Annual Depreciation Expense
Formula		/		=	Depreciation Expense
Amounts		/		=	0
	Depreciation Expense
2021
2022

• Required B

Calculate depreciation expense for 2021 and 2022 using double-declining-balance method.

Double-Declining-Balance Method
	Choose Numerator:		Choose Denominator:		=	Depreciation Expense
Formula	Beginning Book Value				=	Depreciation Expense
Amount for 2021				%	=
Amount for 2022				%	=

• Required C

Calculate depreciation expense for 2021 and 2022 using units-of-production using hours operated. (Round "Depreciation per machine hour" answers to 2 decimal places.)

Select formula for Units of Production Depreciation:
Calculate 2021 depreciation expense:
Depreciation per machine hour
Machine hours in 2021
Depreciation in 2021
Calculate 2022 depreciation expense:
Depreciation per machine hour
Machine hours in 2022
Depreciation in 2022