Question
Question 1: Sandblasting equipment acquired at a cost of $99,000 has an estimated residual value of $6,000 and an estimated useful life of 5 years.
Question 1:
Sandblasting equipment acquired at a cost of $99,000 has an estimated residual value of $6,000 and an estimated useful life of 5 years. It was placed in service on April 1 of the current fiscal year, which ends on December 31. If necessary, round your answers to the nearest cent.
a. Determine the depreciation for the current fiscal year and for the following fiscal year by the straight-line method.
Year 1 = ________
Year 2 = 18,600
Question 2:
Montes Coffee Company purchased packaging equipment on January 5, 2014, for $111,500. The equipment was expected to have a useful life of three years, or 20,000 operating hours, and a residual value of $7,500. The equipment was used for 8,950 hours during 2014, 7,040 hours in 2015, and 4,010 hours in 2016. For DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.
Double-Declining Balance Method:
2014 = _______
2015 = _______
2016 = _______
Total = _______
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