Depreciation by Three Methods; Partial Years Layton Company purchased tool sharpening equipment on October 1 for...

Depreciation by Three Methods; Partial Years

Layton Company purchased tool sharpening equipment on October 1 for $65,070. The equipment was expected to have a useful life of three years or 7,020 operating hours, and a residual value of $1,890. The equipment was used for 1,300 hours during Year 1, 2,500 hours in Year 2, 2,100 hours in Year 3, and 1,120 hours in Year 4.

Required:

Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method.

Expert Solution

ekkarill92 answered 2 years ago

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