Equipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of five years, or 14,000 operating hours, and a residual value of $10,000. Compute the depreciation for the first and second years of use by each of the following methods:
(a)Straight-line
(b)Units-of-activity
(1,200 hours first year; 2,250 hours second year)
(c)Double-declining-balance

Question

Equipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of five years, or 14,000 operating hours, and a residual value of $10,000. Compute the depreciation for the first and second years of use by each of the following methods:
(a)Straight-line
(b)Units-of-activity 
(1,200 hours first year; 2,250 hours second year)
(c)Double-declining-balance​

Quizplus · Accepted Answer

The Answer of Equipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of five years, or 14,000 operating hours, and a residual value of $10,000. Compute the depreciation for the first and second years of use by each of the following methods:
(a)Straight-line
(b)Units-of-activity 
(1,200 hours first year; 2,250 hours second year)
(c)Double-declining-balance​

Equipment Purchased at the Beginning of the Fiscal Year for $360,000