On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $30,000. Residual value at the end of an estimated four-year service life is expected to be $2,000.

 On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $30,000. Residual value at the end of an estimated four-year service life is expected to be $2,000. The company expects the equipment to operate for 10,000 hours. The equipment operated for 2,200 and 3,000 hours in 2021 and 2022, respectively.
Required:
a. Calculate depreciation expense for 2021 and 2022 using straight-line method.

b. Calculate depreciation expense for 2021 and 2022 using double-declining-balance method.

c. Calculate depreciation expense for 2021 and 2022 using units-of-production using hours operated.

 Answer

 

Thanks