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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 81
Calculating Partial-Year Depreciation
Calculate the amount of depreciation to report during the year ended December 31, 2013, for equipment that was purchased at a cost of $43,000 on October 1, 2013. The equipment has an estimated residual value of $3,000 and an estimated useful life of five years or 20,000 hours. Assume the equipment was used for 1,000 hoars from October 1 to December 31 and the company uses: (a) straight-line, (b) double-declining-balance, or (c) units-of-production depreciation.
Calculate the amount of depreciation to report during the year ended December 31, 2013, for equipment that was purchased at a cost of $43,000 on October 1, 2013. The equipment has an estimated residual value of $3,000 and an estimated useful life of five years or 20,000 hours. Assume the equipment was used for 1,000 hoars from October 1 to December 31 and the company uses: (a) straight-line, (b) double-declining-balance, or (c) units-of-production depreciation.
Explanation
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(a)
Under the straight line method, annu...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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