value: 8.00 points Calculate the amount of depreciation to report during the yea

Question

value: 8.00 points Calculate the amount of depreciation to report during the year ended December 31 for equipment that was purchased at a cost of $38,000 on October 1. The equipment has an estimated residual value of $2,000 and an estimated useful life of five years or 20,000 hours. Assume the equipment was used for 1,000 hours from October 1 to December 31 and the company uses (a) straight-line, (b) double-declining-balance, or (c) units-of-production depreciation. (Do not round intermediate calculations.) preciatiorn (a) Straight-Line (b) Double-Declining-Balance (c) Units-of-Production

Explanation / Answer

Calculate depreciation :

Depreciation (a) Straight line (38000-2000/5)*3/12 1800 (b) Double declining balance (38000*40%*3/12) 3800 (c) Unit of production (38000-2000/20000)*1000 1800

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