Question
In: Accounting
On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $52,000. Residual value at the end...
On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $52,000. Residual value at the end of an estimated four-year service life is expected to be $4,000. The company expects the equipment to operate for 12,000 hours. The equipment operated for 3,300 and 4,100 hours in 2021 and 2022, respectively.
Required:
a. Calculate depreciation expense for 2021 and
2022 using straight line method.
b. Calculate depreciation expense for 2021 and
2022 using double-declining balance method.
c. Calculate depreciation expense for 2021 and
2022 using units-of-production using hours operated.
- Required A
- Required B
- Required C
Calculate depreciation expense for 2021 and 2022 using straight line method.
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Calculate depreciation expense for 2021 and 2022 using double-declining balance method.
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Calculate depreciation expense for 2021 and 2022 using units-of-production using hours operated. (Round "Depreciation per machine hour" answers to 2 decimal places.)
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Solutions
Expert Solution
| Straight Line | ||||||
| Date | Cost of asset | Depreciable cost | Useful life | Depreciation expenses | Accumulated Depreciation | Book value |
| 2021 | $52,000 | $48,000 | 4 Years | $12,000 | $12,000 | $40,000 |
| 2022 | $52,000 | $48,000 | 4 Years | $12,000 | $24,000 | $28,000 |
| Units of production | ||||||
| Date | Cost of asset | Depreciation per hours | No. of hours | Depreciation expenses | Accumulated Depreciation | Book value |
| 2021 | $52,000 | $4.00 | 3,300 | $13,200 | $13,200 | $38,800 |
| 2022 | $52,000 | $4.00 | 4,100 | $16,400 | $29,600 | $22,400 |
| Double Declining balance | ||||||
| Date | Cost of asset | Book Value | DDB Rate | Depreciation expenses | Accumulated Depreciation | Book value |
| 2021 | $52,000 | $52,000 | 50.00% | $26,000 | $26,000 | $26,000 |
| 2022 | $52,000 | $26,000 | 50.00% | $13,000 | $39,000 | $13,000 |
ekkarill92 answered 1 year agoRelated Solutions
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