Equipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of 5 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)unit s-of-production (1,200 hours first year; 2,250 hours second year)
(c)declining-balance at twice the straight-line rate (Round the answer to the nearest dollar.)

Question

Equipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of 5 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)unit s-of-production (1,200 hours first year; 2,250 hours second year)
(c)declining-balance at twice the straight-line rate (Round the answer to the nearest dollar.)

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 5 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)unit s-of-production (1,200 hours first year; 2,250 hours second year)
(c)declining-balance at twice the straight-line rate (Round the answer to the nearest dollar.)

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