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Shinzo Abe Telecomunications Inc. purchases a new equipment for $850,000. The estimated salvage value is $2,000. The equipment has a useful life of 6 years
Shinzo Abe Telecomunications Inc. purchases a new equipment for $850,000. The estimated salvage value is $2,000. The equipment has a useful life of 6 years and the company expects to use it 158,000 hours. It was used 27,400 hours in year 1; 27,800 hours in year 2; 26,000 hours in year 3; 26,600 hours in year 4; 22,800 hours in year 5; 27,400 hours in year 6. Compute the annual depreciation for each of the 6 years under each of the following methods: (1) straight-line. (2) units-of-activity
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