Question
please answer ABC Company purchased equipment on May 1, 2021 costing $1,000,000. Its estimated salvage value is $90,000 and its expected life is eight years.
please answer
ABC Company purchased equipment on May 1, 2021 costing $1,000,000. Its estimated salvage value is $90,000 and its expected life is eight years. Estimated total units of activity is 200,000 hours.
Instructions:
Calculate the depreciation expense (to the nearest dollar) by each of the following methods, SHOWING ALL CALCULATIONS.
(a) Straight-line for 2021, 2022
(b) Double-declining balance for 2021, 2022, 2023
(c) Sum-of-the-years'-digits for 2021, 2022,2023
(d) Units of activity method, assuming 12,000 hours in 2021 and 27,000 hours in 2022
(e) Record the entry for depreciation in 2021, assuming the straight line method is used
(f) calculate the book value of the asset at 12/31/22, assuming the straight line method is used
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