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plz do a & b On July1, 2021 Work & Safe Consulting Inc. (WSC) purchased heavy construction equipment for $1,000,000. WSC paid $6,000 in transport
plz do a & b
On July1, 2021 Work \& Safe Consulting Inc. (WSC) purchased heavy construction equipment for $1,000,000. WSC paid $6,000 in transport fees to transport the machine to its place of business and an additional $2,000 in shipping insurance. WSC expects that the residual value of the equipment at the end of its 6-year life will be $200,000 and expects that equipment will operate for a total of 80,000 equipment working hours. Actual equipment working hours used for the years ended December 31, 2021, and December 31, 2022, are 6000 and 14000 , respectively. Required: a) Compute the acquisition cost of the equipment by WSC on July 1,2021 (2. Marics) b) Compute the depreciation expense for the years ended December 31, 2021 and December 31, 2022 under: the Straight line and Units of Production methods. Show computations. (Nore: Use two decimal places for per-unit calculation and round all other numbers to the nearest dollar amount) (4 Marks) Step by Step Solution
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