[socialight]

Equipment purchased at the beginning of the fiscal year for $185,000 is expected to have a useful like of 5 years, or 15000 operating hours, and a second year value of $15,000. Compute the depreciation for the first and secon years of use by each of the following methods

(a) straight line
(b) units of production (2500 hours first year, 3250 hours second year)
(c) declining balance at twice the straight line rates

[pready]

Straight Line is cost of $185,000 - salvage value /5 years = Depreciation per year

UoP use ($185,000 - Salvage value)/Total Estimated hours = Depreciation cost per hour
for each year of use take the Depreciation cost per hour * hours used = Depreciation Expense

Declining balance in this case is 40% , 1/# of years * 100
take the beginning year book value * rate of 40% = Depreciation expense
Beginning book value - Depreciation expense = ending year book balance