P11-2 (Depreciation for Partial Periods–SL, Act., SYD, and DDB) The cost of equi
ID: 2444102 • Letter: P
Question
P11-2(Depreciation for Partial Periods–SL, Act., SYD, and DDB)
The cost of equipment purchased by Charleston, Inc., on June 1, 2010 is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of its service life. Its service life is estimated at 7 years; its total working hours are estimated at 42,000 and its total production is estimated at 525,000 units. During 2010 the machine was operated 6,000 hours and produced 55,000 units. During 2011 the machine was operated 5,500 hours and produced 48,000 units.
Compute depreciation expense on the machine for the year ending December 31, 2010, and the year ending December 31, 2011, using the following methods. (Round all answers to 0 decimal places, i.e. 10,510.)
Straight-line.
2010 $
2011 $
Units-of-output.
2010 $
2011 $
Working hours.
2010 $
2011 $
Sum-of-the-years'-digits.
2010 $
2011 $
Declining balance (twice the straight-line rate).
2010 $
2011 $
Explanation / Answer
Straight-line. 2010 $ 7000 2011 $ 12000 Units-of-output. 2010 $ 8800 2011 $ 7680 Working hours. 2010 $ 12000 2011 $ 11000 Sum-of-the-years'-digits. 2010 $ 12250 2011 $ 19250 Declining balance (twice the straight-line rate). 2010 $ 14833 2011 $ 21190
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.