M9-7 Calculating Partial-Year Depreciation [LO 9-3] Calculate the amount of depr

Question

M9-7 Calculating Partial-Year Depreciation [LO 9-3] Calculate the amount of depreciation to report during the year ended December 31 for equipment that was purchased at a cost of $39,000 on October 1. The equipment has an estimated residual value of $3,000 and an estimated useful life of five years or 20,000 hours. Assume the equipment was used for 1,000 hours from October 1 to December 31 and the company uses (a) straight-line, (b) double-declining-balance, or (c) units-of-production depreciation. Do not round intermediate calculations.) Depreciation (a) Straight-Line (b)Double-Declining-Balance (c) Units-of-Production

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WN for A: WN on Left Side: Machine Cost 39000 A Straight Line 1800 (7200*3/12) Less: Salvage 3000 B Double Declining Method 3900 (15600*3/12) Deprciable cost 36000 C Units of Production 1800 (1.8*1000) Useful Life 5 Deprciable PA 7,200 WN for B: Useful Life 5 Rate 1/Life Rate 20.00% Double Rate 40.00% For a Year Dep 15,600 (39000*40%) WN for C: Machine Cost 39000 Less: Salvage 3000 Deprciable cost 36000 Expected Hours 20000 Depreciation PH 1.80

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