tcuryl02
Feb 8, 2008, 09:13 AM
Any assistance with understanding this would be great.
Machinery is purchased on July 1 of the current fiscal year for $180,000. It is expected to have a useful life of 4 years, or 20,000 operating hours, and a residual value of $20,000. Compute the depreciation for the last six months of the current fiscal year ending December 31 by each of the following methods:
(a) straight-line
(b) declining-balance at twice the straight-line rate
(c) units-of-production (used for 1,500 hours during the current year)
(Round the answer to the nearest dollar.)
Machinery is purchased on July 1 of the current fiscal year for $180,000. It is expected to have a useful life of 4 years, or 20,000 operating hours, and a residual value of $20,000. Compute the depreciation for the last six months of the current fiscal year ending December 31 by each of the following methods:
(a) straight-line
(b) declining-balance at twice the straight-line rate
(c) units-of-production (used for 1,500 hours during the current year)
(Round the answer to the nearest dollar.)