Depreciation by Three Methods; Partial Years
Razar Sharp Company purchased equipment on July 1, 2014, for$48,870. The equipment was expected to have a useful life of threeyears, or 4,320 operating hours, and a residual value of $1,350.The equipment was used for 800 hours during 2014, 1,500 hours in2015, 1,300 hours in 2016, and 720 hours in 2017.
Required:
Determine the amount of depreciation expense for the years endedDecember 31, 2014, 2015, 2016, and 2017, by (a) the straight-linemethod, (b) units-of-output method, and (c)thedouble-declining-balance method.
Note: FOR DECLINING BALANCE ONLY, round the multiplier to fourdecimal places. Then round the answer for each year to the nearestwhole dollar.
a. Straight-line method
Year Amount 2014 $ 2015 $ 2016 $ 2017 $
b. Units-of-output method
Year Amount 2014 $ 2015 $ 2016 $ 2017 $
c. Double-declining-balance method
Year Amount 2014 $ 2015 $ 2016 $ 2017 $
Depreciation by Three Methods; Partial Years
Razar Sharp Company purchased equipment on July 1, 2014, for$48,870. The equipment was expected to have a useful life of threeyears, or 4,320 operating hours, and a residual value of $1,350.The equipment was used for 800 hours during 2014, 1,500 hours in2015, 1,300 hours in 2016, and 720 hours in 2017.
Required:
Determine the amount of depreciation expense for the years endedDecember 31, 2014, 2015, 2016, and 2017, by (a) the straight-linemethod, (b) units-of-output method, and (c)thedouble-declining-balance method.
Note: FOR DECLINING BALANCE ONLY, round the multiplier to fourdecimal places. Then round the answer for each year to the nearestwhole dollar.
a. Straight-line method
Year | Amount |
2014 | $ |
2015 | $ |
2016 | $ |
2017 | $ |
b. Units-of-output method
Year | Amount |
2014 | $ |
2015 | $ |
2016 | $ |
2017 | $ |
c. Double-declining-balance method
Year | Amount |
2014 | $ |
2015 | $ |
2016 | $ |
2017 | $ |