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    Marshawright's Avatar
    Marshawright Posts: 1, Reputation: 1
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    #1

    Nov 7, 2010, 07:49 PM
    What method of depreciation to use?
    Equipment purchased at 80,000. The residual value is at 5,000 and estimated life of 8years, or 12,500 hours of operation. The crane was purchased on January 1, 2011 and was used 2,700 hours in 2011 and 2,600 hours in 2012? Straight- line, Double- declining balance, Units of production, or all methods produce the same expense in 2011?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Nov 8, 2010, 07:48 PM

    You need to calculate the deprecation expense for 2011 for each of the different depreciation methods.
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