Razar Sharp Company purchased equipment on July 1, 2010, for $22,140. The equipment was expected to have a useful life of three years, or 4,320 operating hours, and a residual value of $540. The equipment was used for 800 hours during 2010, 1,500 hours in 2011, 1,300 hours in 2012, and 720 hours in 2013.
Instructions:
1. Determine the amount of depreciation expense for the years ended December 31, 2010, 2011, 2012, and 2013, by (a) thestraight line method, (b) theunits of production method, and (c) thedouble declining balance method. Do not round your intermediate calculations but round final answers to the nearest dollar.
a. Straight line method
| Year | Amount | ||||||||||||||||||||
| 2010 | $ | ||||||||||||||||||||
| 2011 | $ | ||||||||||||||||||||
| 2012 | $ | ||||||||||||||||||||
| 2013 |
$ b. Units of production method
c. Double declining balance method
|