WEEK$-5$ IN CLASS PRACTICE

AP On April $22,2023,$ Sandstone Enterprises purchased equipment for $$129,200.$ The company expects

to use the equipment for $12,000$ working hours during its four$-$year life and that it will have a residual

value of $$14,000.$ Sandstone has a December $31$ year end and pro$-$rates depreciation to the nearest

month. The actual machine usage was: $1,900$ hours in $2023$; $2,800$ hours in $2024$;$3,700$ hours in $2025$

$2,700$ hours in $2026$; and $1,100$ hours in $2027.$

Instructions

Prepare a depreciation schedule for the life of the asset under each of the following methods:

straight$-$line,

units$-$of$-$production.

double diminishing$-$balance