Comparing Three Depreciation Methods
Waldum Company purchased packaging equipment on January 5, 2012,for $135,000. The equipment was expected to have a useful life ofthree years, or 18,000 operating hours, and a residual value of$13,500. The equipment was used for 8,600 hours during 2012, 5,300hours in 2013, and 4,100 hours in 2014.
Required:
1. Determine the amount of depreciation expensefor the years ended December 31, 2012, 2013, and 2014, by (a) thestraight-line method, (b) units-of-output method, and (c) thedouble-declining-balance method. Also determine the totaldepreciation expense for the three years by each method.
Note: FOR DECLINING BALANCE ONLY, round the multiplier to fourdecimal places. Then round the answer for each year to the nearestwhole dollar.
DepreciationExpense Year Straight-LineMethod Units-of-OutputMethod Double-Declining-BalanceMethod 2012 $ $ $ 2013 $ $ $ 2014 $ $ $ Total $ $ $
Comparing Three Depreciation Methods
Waldum Company purchased packaging equipment on January 5, 2012,for $135,000. The equipment was expected to have a useful life ofthree years, or 18,000 operating hours, and a residual value of$13,500. The equipment was used for 8,600 hours during 2012, 5,300hours in 2013, and 4,100 hours in 2014.
Required:
1. Determine the amount of depreciation expensefor the years ended December 31, 2012, 2013, and 2014, by (a) thestraight-line method, (b) units-of-output method, and (c) thedouble-declining-balance method. Also determine the totaldepreciation expense for the three years by each method.
Note: FOR DECLINING BALANCE ONLY, round the multiplier to fourdecimal places. Then round the answer for each year to the nearestwhole dollar.
DepreciationExpense | ||||||
---|---|---|---|---|---|---|
Year | Straight-LineMethod | Units-of-OutputMethod | Double-Declining-BalanceMethod | |||
2012 | $ | $ | $ | |||
2013 | $ | $ | $ | |||
2014 | $ | $ | $ | |||
Total | $ | $ | $ |