Solution-Calculate the amount of amortization expense for

Calculate the amount of amortization expense for the year

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Reference no: EM132824846

Tolbert Company purchased equipment on January 1, 2008 for $60,000. It is estimated that the equipment will have a $5,000 residual value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life.

Instructions

Answer the following independent questions.

Problem 1. Calculate the amount of amortization expense for the year ended December 31, 2008, using the straight-line method of amortization.

Problem 2. If 16,000 units of product are produced in 2008 and 24,000 units are produced in 2009, what is the book value of the equipment at December 31, 2009 using the units-of-activity amortization method.

Problem 3. If the company uses the double declining-balance method of amortization, what will be the balance of the Accumulated Amortization-Equipment account at December 31, 2010?

Reference no: EM132824846

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Calculate the amount of amortization expense for the year

Reference no: EM132824846

Reference no: EM132824846

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