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On April 29, 2013, Quality Appliances purchased equipment for $294,000. The esti

ID: 2380509 • Letter: O

Question

On April 29, 2013, Quality Appliances purchased equipment for $294,000. The estimated service life of the equipment is six years and the estimated residual value is $33,000. Quality's fiscal year ends on December 31.


Calculate depreciation for 2013 and 2014 using each of the three methods listed. Quality calculates partial year depreciation based on the number of months the asset is in service. (Do not round intermediate calculations.)


On April 29, 2013, Quality Appliances purchased equipment for $294,000. The estimated service life of the equipment is six years and the estimated residual value is $33,000. Quality's fiscal year ends on December 31.

On April 29, 2013, Quality Appliances purchased equipment for $294,000. The estimated service life of the equipment is six years and the estimated residual value is $33,000. Quality's fiscal year ends on December 31. Calculate depreciation for 2013 and 2014 using each of the three methods listed. Quality calculates partial year depreciation based on the number of months the asset is in service. (Do not round intermediate calculations.)

Explanation / Answer

Calculate depreciation for 2013 and 2014 using each of the three methods listed. Quality calculates partial year depreciation based on the number of months the asset is in service. (Do not round intermediate calculations.)





2013 2014 1. Straight-line $29,000 $43,500 2. Sum-of-the-years
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