Question

On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $30,000. Residual value at the end...

On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $30,000. Residual value at the end of an estimated four-year service life is expected to be $2,000. The company expects the equipment to operate for 10,000 hours. The equipment operated for 2,200 and 3,000 hours in 2021 and 2022, respectively.

Required:
a. Calculate depreciation expense for 2021 and 2022 using straight line method.
b. Calculate depreciation expense for 2021 and 2022 using double-declining balance method.
c. Calculate depreciation expense for 2021 and 2022 using units-of-production using hours operated.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On March 31, 2021, Canseco Plumbing Fixtures purchased equipment for $42,000. Residual value at the end...
On March 31, 2021, Canseco Plumbing Fixtures purchased equipment for $42,000. Residual value at the end of an estimated four-year service life is expected to be $8,000. The company expects the equipment to operate for 10,000 hours. The equipment operated for 2,800 and 3,600 hours in 2021 and 2022, respectively. Required: a. Calculate depreciation expense for 2021 and 2022 using straight-line method. b. Calculate depreciation expense for 2021 and 2022 using double-declining-balance method. c. Calculate depreciation expense for 2021 and...
On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $56,000. Residual value at the end...
On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $56,000. Residual value at the end of an estimated four-year service life is expected to be $2,000. The company expects the machine to operate for 15,000 hours. The machine operated for 3,500 and 4,300 hours in 2018 and 2019, respectively. a. Calculate depreciation expense for 2018 and 2019 using straight line method. b. Calculate depreciation expense for 2018 and 2019 using sum-of-the-years'-digits method. c. Calculate depreciation expense for 2018 and...
On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $36,000. Residual value at the end...
On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $36,000. Residual value at the end of an estimated four-year service life is expected to be $6,000. The company expects the machine to operate for 20,000 hours. The machine operated for 2,500 and 3,300 hours in 2018 and 2019, respectively. a. Calculate depreciation expense for 2018 and 2019 using straight line method. b. Calculate depreciation expense for 2018 and 2019 using sum-of-the-years'-digits method. c. Calculate depreciation expense for 2018 and...
On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $64,000. Residual value at the end...
On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $64,000. Residual value at the end of an estimated four-year service life is expected to be $10,000. The company expects the machine to operate for 10,000 hours. The machine operated for 3,900 and 4,700 hours in 2018 and 2019, respectively. Calculate depreciation expense for 2018 and 2019 using straight line method. Calculate depreciation expense for 2018 and 2019 using sum-of-the-years'-digits method. Calculate depreciation expense for 2018 and 2019 using double-declining...
On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $54,000. Residual value at the end...
On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $54,000. Residual value at the end of an estimated 7 year service life is expected to be $26,000. The company expects the equipment to operate for 16,000 hours. Required: a. Calculate depreciation expense for 2021 and 2022 using sum-of-the-years’-digits assuming the equipment was purchased on January 1, 2021. b. Calculate depreciation expense for 2021 and 2022 using sum-of-the-years’-digits assuming the equipment was purchased on March 31, 2021.
On March 31, 2018, Canseco Plumbing Fixtures purchased equipment for $44,000. Residual value at the end...
On March 31, 2018, Canseco Plumbing Fixtures purchased equipment for $44,000. Residual value at the end of an estimated four-year service life is expected to be $8,000. The company expects the machine to operate for 20,000 hours. a. Calculate depreciation expense for 2018 and 2019 using straight line method. b. Calculate depreciation expense for 2018 and 2019 using sum-of-the-years’-digits method. c. Calculate depreciation expense for 2018 and 2019 using double-declining balance method.
Mountainview Resorts purchased equipment for $33,000. Residual value at the end of an estimated four-year service...
Mountainview Resorts purchased equipment for $33,000. Residual value at the end of an estimated four-year service life is expected to be $6,800. The machine operated for 1,100 hours in the first year and the company expects the machine to operate for a total of 8,000 hours over its four year life. Calculate depreciation expense for the first year using each of the following depreciation methods: (1) straight-line, (2) double-declining-balance, and (3) activity-based. (Round your intermediate calculations to 2 decimal places.)
Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have...
Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $5,000 at the end of five years. Using the straight-line method, depreciation expense for 2022 and the book value at December 31, 2022, would be:
Sheffield Corp. purchased equipment on January 1, 2021 for $139,500. It is estimated that the equipment...
Sheffield Corp. purchased equipment on January 1, 2021 for $139,500. It is estimated that the equipment will have a $7,750salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 155,000 units over its 5-year life. Answer the following independent questions. Compute the amount of depreciation expense for the year ended December 31, 2021 using the straight-line method of depreciation. Straight-line method $enter the depreciation expense under the straight-line method for the...
Blue Spruce Corp. purchased equipment on January 1, 2021 for $162,000. It is estimated that the...
Blue Spruce Corp. purchased equipment on January 1, 2021 for $162,000. It is estimated that the equipment will have a $9,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 180,000 units over its 5-year life. Answer the following independent questions. Compute the amount of depreciation expense for the year ended December 31, 2021 using the straight-line method of depreciation. Straight-line method $enter the depreciation expense under the straight-line method...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT