Question #7- Depreciation Methods

Transtel Company purchased equipment on January 1st, 2018 for 1,600,000.

A.) Calculate the annual Depreciation expense for the first 2 years of the equipments life (estimated at 5 years or 40,000 units with a salvage value of $150,000) using the schedule below. The equipment was used to produce 12,000 units in 2018; and 13,500 units in 2019

B.) Prepare the Journal Entry for the year 31 Deember 2019 under the straight line method of depreciation.

20 * ols Add-ons Help All changes saved SIN + - Times New.. - 16 BI U A GO - IEEEEE LI - QUESTION #7 - DEPRECIATION METHODS Transtel Company purchased equipment on January 1", 2018, for $1,600,000. REQUIRED: Calculate the annual Depreciation expense for the first 2 years of the equipment's life (estimated at yours or 40,000 units with a salvage value of $150,000) using the schedule below. The equipment was used to produce 12,000 units in 2018; and 13,500 units in 2019. . Year Straight Line Units of Production Double Declining Balance the straight line method of Prepare the journal Depreciation. Date Debit Credit