PR 10-3B Depreciation by three methods; partial years Helix Company purchased tool sharpening equipment on April 1, 2010, for $72,000. The equipment was expected to have a useful life of three years, or 9,000 operating hours, and a residual value of $2,700. The equipment was used for 2,400 hours during 2010, 4,000 hours in 2011, 2,000 hours in 2012, and 600 hours in 2013. Instructions Determine the amount of depreciation expense for the years ended December 31, 2010, 2011, 2012, and 2013, by (a) the straight-line method, (b) the units-of-production method, and (c) the double-declining-balance method.

Problem 10-3B ACCOUNTING Using excel for Success Reeve Warren Ducha FINANCIAL ACCOUNTING Name: Section: Waren. Reeve Duchac ACCOUNTING Score: 64% Warren Reeve. Duchac Key Code: [Key code here] Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry. a. Straight- Line Depreciation Expense b. Units of Production C. Double-Declining- Balance Year 2010 $ $ $ 2011 2012 2013 17,325 23,100 23,100 5,775 69,300 18,480 30,800 15,400 4,620 69,300 36,000 24,000 8,000 1,300 69,300 Totals $ $ $ Calculations: Calculations: Straight-line method: For full year: / Years (Cost 72,000 Residual Value) $ 2,700 Yearly Depreciation 2310000.00% $ 3 For part year 2010: Yearly Depreciation x Portion of Year $ 12,994 * Depreciation For part year 2013: Yearly Depreciation x Portion of Year $ 17,325 = Depreciation Units-of-production method: (Cost Residual Value) $ 72,000 $ 2,700 1 Total Hours 9,000 Rate $7.70 2010 2011 2012 2013 Rate $7.70 $7.70 $7.70 $7.70 Hours 2,400 4,000 2,000 600 Yearly Depreciation $ 18,480 $ 30,800 $ 15,400 $ 4,620 Double-declining-balance method: Yearly Depreciation Depreciable Balance $ 72,000 Rate Portion of Year - 2010 2011 2012 Since depreciation cannot cause book value to fall below residual value: Depreciable Residual Balance Value Yearly Depreciation 2013 =