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  • Feb 8, 2008, 09:13 AM
    tcuryl02
    Depreciation - straight line
    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.)

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