Question
In: Accounting
On July 1, Hartford Construction purchases a bulldozer for $228,000. The equipment has a 9-year life...
On July 1, Hartford Construction purchases a bulldozer for $228,000. The equipment has a 9-year life with a residual value of $16,000. Hartford uses the units-of-output method depreciation, and the bulldozer is expected to yield 26,500 operating hours.
Required:
| (a) | Calculate the depreciation expense per hour of operation. |
| (b) | The bulldozer is operated 1,250 hours in the first year, 2,755 hours in the second year, and 1,225 hours in the third year of operations. Journalize the depreciation expense for each year.* |
| *Refer to the Chart of Accounts for exact wording of account titles. |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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cost for the first 4 years is $12,500, at which time the equipment
is given a major overhaul for $75,000. For the next 4 years, the
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equipment for impairment and estimates $127,500 in future cash
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