On January 1, 2016, Canseco Plumbing Fixtures purchasedequipment for $44,000. Residual value at the end of an estimatedfour-year service life is expected to be $8,000. The companyexpects the machine to operate for 20,000 hours. The machineoperated for 2,900 and 3,700 hours in 2016 and 2017,respectively.
a. Calculate depreciation expense for 2016 and 2017 usingstraight line method.
b. Calculate depreciation expense for 2016 and 2017 usingsum-of-the-years'-digits method.
c. Calculate depreciation expense for 2016 and 2017 usingdouble-declining balance method.
d. Calculate depreciation expense for 2016 and 2017 usingunits-of-production method (using machine hours). (Round"Depreciation per machine hour" answers to 2 decimal places.)
On January 1, 2016, Canseco Plumbing Fixtures purchasedequipment for $44,000. Residual value at the end of an estimatedfour-year service life is expected to be $8,000. The companyexpects the machine to operate for 20,000 hours. The machineoperated for 2,900 and 3,700 hours in 2016 and 2017,respectively.
a. Calculate depreciation expense for 2016 and 2017 usingstraight line method.
b. Calculate depreciation expense for 2016 and 2017 usingsum-of-the-years'-digits method.
c. Calculate depreciation expense for 2016 and 2017 usingdouble-declining balance method.
d. Calculate depreciation expense for 2016 and 2017 usingunits-of-production method (using machine hours). (Round"Depreciation per machine hour" answers to 2 decimal places.)
Related questions
2.
On March 31, 2018, Canseco Plumbing Fixtures purchased equipment for $32,000. Residual value at the end of an estimated four-year service life is expected to be $8,000. The company expects the machine to operate for 20,000 hours.
a. Calculate depreciation expense for 2018 and 2019 using straight line method.
b. Calculate depreciation expense for 2018 and 2019 using sum-of-the-yearsâ-digits method.
c. Calculate depreciation expense for 2018 and 2019 using double-declining balance method.
A.
Calculate depreciation expense for 2018 and 2019 using straight line method.
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B. Calculate depreciation expense for 2018 and 2019 using sum-of-the-yearsâ-digits method.
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C. Calculate depreciation expense for 2018 and 2019 using double-declining balance method.
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