On March 31, 2013, Canseco Plumbing Fixtures purchased equipment for $48,000. Re
ID: 2621995 • Letter: O
Question
On March 31, 2013, Canseco Plumbing Fixtures purchased equipment for $48,000. Residual value at the end of an estimated four-year service life is expected to be $6,000. The company expects the machine to operate for 12,000 hours.
Calculate depreciation expense for 2013 and 2014 using sum-of-the-years
On March 31, 2013, Canseco Plumbing Fixtures purchased equipment for $48,000. Residual value at the end of an estimated four-year service life is expected to be $6,000. The company expects the machine to operate for 12,000 hours.
Explanation / Answer
a) (48,000-6,000)/4 = 10,500
10,500*9/12= 7875 for 2013
10,500 for 2014.
b) SOYD 4/(4+3+2+1)= 4/10 *(48,000-6,000)= 16,800 *9/12 = 12,600 for 2013
(16,800)*3/12 +3/10* 42,000* 9/12= 13,650 for 2014
c) 48,000* 2/4= 24,000 *9/12= 18,000 for 2013
6,000 + 2/4 (48,000-24,000)*9/12 = 15,000 for 2014
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.