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Please help me with this question and if you can show works. thanks!! 10,000 Computing Depreciation Using Various Depreciation Methods To demonstrate the computations involved
Please help me with this question and if you can show works. thanks!!
10,000 Computing Depreciation Using Various Depreciation Methods To demonstrate the computations involved in several methods of depreciating a fixed asset, the following data are used for equipment purchased on January 1, 2020. Cost and residual value Estimated service life: Acquisition cost $12,500 Years 5 Residual value $500 Service hours Productive output (units) 24,000 Required Compute annual depreciation using each of the following methods. a. Straight-line depreciation: Compute the depreciation rate and amount for each year. Depreciation Rate 0.2 2020 2021 2022 2023 2024 Depreciation Expense $ 0 x $ 0 x $ 0 x $ 0 x $ OX b. Units-of-production method using service hours as a measure of input: Compute the depreciation rate and amount of depreciation expense for the first year assuming 2,200 service hours of actual operation. Depreciation Rate 1.2 2020 2,640 Depreciation Expense c. Units-of-production method using units produced as a measure of output: Compute the depreciation rate and amount of depreciation expense for the first year assuming 4,000 units of output. Depreciation Rate 0.5 2020 2,000 Depreciation Expense $ d. Sum-of-the-years'-digits method: Compute the depreciation amount for each year. 2020 2021 2022 2023 2024 $ 0 x $ Ox $ 0 x $ 0 x $ 800 e. Double-declining-balance method: Compute the depreciation amount for each year. 2020 2021 2022 2023 2024 $ 5,000 $ 3,000 $ 18,000 x $ 1,080$ 648 x CheckStep by Step Solution
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