Essay
A company purchased equipment for $325,000 on January 2,2010.The company expects the equipment to last for eight years or 60,000 hours of operation,with an estimated salvage value of $25,000.During 2010,the equipment was in operations for 8,000 hours,while in 2011 the equipment was in operations for 8,700 hours.Compute the depreciation expense relating to the equipment for 2010 and 2011 using the following depreciation methods:
a. Straight-line
b. Double-declining-balance
c. Units-of-production.
Correct Answer:
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a.($325,000 - $25,000)/8 = $37,500 for b...View Answer
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