Question

equipment purchased at the beginning of the fiscal year for $150,000 is expected to have a useful life of 5 years, or 15,000 operating hrs, and a residual value of $30,000

equipment purchased at the beginning of the fiscal year for $150,000 is expected to have a useful life of 5 years, or 15,000 operating hrs, and a residual value of $30,000. Compute the depreciation for the first and second years of use by each of the following methods:
1. straight line
2. units of production (2500 hours first year, 3250 hours second year)
3. declining balance at twice the straight line rate

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