Home / Questions / On January 1, 2018, Canseco Plumbing Fixtures purchasedequipment for $36,000. Residual val...
On January 1, 2018, Canseco Plumbing Fixtures purchasedequipment for $36,000. Residual value at the end of an estimatedfour-year service life is expected to be $6,000. The companyexpects the machine to operate for 20,000 hours. The machineoperated for 2,500 and 3,300 hours in 2018 and 2019,respectively.
a. Calculate depreciation expense for 2018 and2019 using straight line method.
b. Calculate depreciation expense for 2018 and2019 using sum-of-the-years'-digits method.
c. Calculate depreciation expense for 2018 and2019 using double-declining balance method.
d. Calculate depreciation expense for 2018 and2019 using units-of-production method (using machine hours).
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