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Quick Producers acquired factory equipment on March 1 of Year 1 costing $39,000 . In view of pending technological developments, it is estimated that the equipment will have an $8,000 resale value upon disposal in four years and that disposal costs will be $500. Data relating to the equipment follow.
Estimated Service Life | |
---|---|
Years | 4 |
Service hours | 20,000 |
Calendar Year | Actual Service Hours |
---|---|
Year 1 | 4,700 |
Year 2 | 5,000 |
Year 3 | 4,800 |
Year 4 | 4,400 |
Year 5 | 1,000 |
Required
Compute
●Note: Round depreciation expense to the nearest whole dollar
1. Units-of-Production
●Note: Do not use negative signs with any of your answers.
Numerator | Denominator | Result | |||
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Depreciation per Unit | Answer
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÷ | Answer
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= |
●Note: Use the result EXACTLY as displayed above in the calculations below.
Depreciation for the Period | ||||
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Reporting | Units of | Depreciation per | Depreciation | |
Period | Output | Unit | Expense | |
Dec. 31, Year 1 | Answer
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Answer
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Answer
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Dec. 31, Year 2 | Answer
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Answer
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Dec. 31, Year 3 | Answer
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Answer
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Dec. 31, Year 4 | Answer
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Answer
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Dec. 31, Year 5 | Answer
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Answer
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2. Straight-Line
Reporting | Depreciation | |
---|---|---|
Period | Expense | |
Dec. 31, Year 1 | Answer
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Dec. 31, Year 2 | Answer
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Dec. 31, Year 3 | Answer
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Dec. 31, Year 4 | Answer
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Dec. 31, Year 5 | Answer
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3. Sum-of-the-Years'-Digits
Reporting | Depreciation |
---|---|
Period | Expense |
Dec. 31, Year 1 | Answer
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Dec. 31, Year 2 | Answer
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Dec. 31, Year 3 | Answer
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Dec. 31, Year 4 | Answer
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Dec. 31, Year 5 | Answer
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4. Double-Declining Balance
Reporting | Depreciation |
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Period | Expense |
Dec. 31, Year 1 | Answer
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Dec. 31, Year 2 | Answer
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Dec. 31, Year 3 | Answer
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Dec. 31, Year 4 | Answer
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Dec. 31, Year 5 | Answer
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