Question
On January 1, 2022, Howe's HVAC purchased a new piece of equipment so they could start manufacturing their own air conditioning units. This new piece
On January 1, 2022, Howe's HVAC purchased a new piece of equipment so they could start manufacturing their own air conditioning units.
This new piece of equipment cost them $30,000, at the end of the four-year service life the salvage value is expected to be $2,000.
The company expects the equipment to operate for 10,000 hours.
The equipment operated for 2,200 and 3,000 hours in 2024 and 2025, respectively.
If Howe's using straight-line depreciation, what is the depreciation expense for 2022 and 2023?
2022 depreciation expense:
2023 depreciation expense:
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Accounting
Authors: Charles T. Horngren, Walter T. Harrison Jr., M. Suzanne Oliv
9th Edition
130898414, 9780132997379, 978-0130898418, 132997371, 978-0132569309
