Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below. On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of $29,000. The drill press is expected to last 10 years and has a residual value of $5,000. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2018 and 2019, 20,000 and 74,000 units, respectively, were produced. equired: Compute depreciation for 2018 and 2019 and the book value of the drill press at December 31, 2018 and 2019, assuming the straight- ine method is used 2018 2019 Depreciation Book Values

Explanation / Answer

Calculation of depreciation under SLM method:

2018 2019 Depreciation ($29,000-$5,000)/ 10= $2,400 ($29,000-$5,000)/ 10= $2,400 Book Values $29,000 - $2,400 = $26,600 $26,600 - $2,400 = $24,200

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.