Razar Sharp Company purchased equipment on July 1, 2010, for $22,140. The equipm

Question

Razar Sharp Company purchased equipment on July 1, 2010, for $22,140. The equipment was expected to have a useful life of three years, or 4,320 operating hours, and a residual value of $540. The equipment was used for 800 hours during 2010, 1,500 hours in 2011, 1,300 hours in 2012, and 720 hours in 2013.

Instructions:

1. Determine the amount of depreciation expense for the years ended December 31, 2010, 2011, 2012, and 2013, by (a) the straight-line method, (b) the units-of-production method, and (c) the double-declining-balance method. Do not round your intermediate calculations but round final answers to the nearest dollar.

a. Straight-line method

$

b. Units-of-production method

c. Double-declining-balance method

Year Amount 2010 $ 2011 $ 2012 $ 2013

$

b. Units-of-production method

Year Amount 2010 $ 2011 $ 2012 $ 2013 $

c. Double-declining-balance method

Year Amount 2010 $ 2011 $ 2012 $ 2013 $

Explanation / Answer

a. Straight-line method Year Amount 2010 $     3,600.00 2011 $     7,200.00 2012 $     7,200.00 2013 $     3,600.00 b. Units-of-production method Year Amount 2010 $   4,000.00 2011 $   7,500.00 2012 $   6,500.00 2013 $   3,600.00 c. Double-declining-balance method Year Amount 2010 $   7,380.00 2011 $   9,840.00 2012 $   3,280.00 2013 $   1,093.00

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