Question
Twilight Manufacturing's property, plant and equipment records reveal the following information: Equipment Cost Residual Value Purchase Date Depreciation Method Estimated Useful Life Units Produced in
Twilight Manufacturing's property, plant and equipment records reveal the following information:
Equipment | Cost | Residual Value | Purchase Date | Depreciation Method | Estimated Useful Life | Units Produced in 2014 |
(1) | 60,000 | 12,000 | December 1, 2019 | Straight Line | 5 years | 2,000 |
(2) | 70,000 | 8,000 | October 18, 2020 | Units of Production | 50,000 units | 5,000 |
(3) | 130,000 | - | June 12, 2020 | Double Declining Balance | 10 years | 6,000 |
(4) | 100,000 | 10,000 | May 3, 2020 | Straight Line | 8 Years | 8,000 |
Calculate the depreciation expense for each equipment item for the year ended December 31, 2020, using the nearest whole month method.
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