depreciation methods 454863

Aug 29, 2021 | Uncategorized

  • Equipment purchased at the beginning of the fiscal year for $150,000 is expected to have a useful life of 5 years, or 15,000 operating hours, and a residual value of $30,000. Compute the depreciation for the first and second years of use by each of the following methods:

    (a) straight line
    (b) units of production (2,500 hours first year; 3,250 hours second year)
    (c) declining balance at twice the straight line rate

    (Round the answer to the nearest dollar.)