Razar Sharp Company purchased equipment on July 1, 2010, for $22,140. The equipment was expected to have a useful life of three years, or 4,320 operating
hours, and a residual value of $540. The equipment was used for 800 hours during 2010, 1,500 hours in 2011, 1,300 hours in
2012, and 720 hours in 2013.
Instructions:
1. Determine the amount of depreciation expense for the years ended December 31, 2010, 2011, 2012, and 2013, by (a) thestraight-line method, (b) theunits-of-production method, and (c) thedouble-declining-balance method. Do not round your intermediate calculations but round final answers to the nearest dollar.
a. Straight-line method
| Year | Amount | ||||||||||||||||||||
| 2010 | $ | ||||||||||||||||||||
| 2011 | $ | ||||||||||||||||||||
| 2012 | $ | ||||||||||||||||||||
| 2013 |
$ b. Units-of-production method
c. Double-declining-balance method
|
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