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Question - On January 1, 2021, Canseco Plumbing Fixtures purchased equipment for $44,000. Residual value at the end of an estimated four-year service life is expected to be $8,000. The company expects the equipment to operate for 20,000 hours. The equipment operated for 2,900 and 3,700 hours in 2021 and 2022, respectively.
Required -
a. Calculate depreciation expense for 2021 and 2022 using straight-line method.
b. Calculate depreciation expense for 2021 and 2022 using double-declining-balance method.
c. Calculate depreciation expense for 2021 and 2022 using units-of-production using hours operated.
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