Reference no: EM132429776

Question - Calculate the depreciation for the following scenarios.

Bought a piece of equipment costing $30,000, with a salvage value of $10,000.

a) Figure depreciation using SL depreciation, assuming a 10 year life.

b) Figure the units of production (activity) depreciation. Assuming that total units will be 100,000.

Year 1 - 20,000 units

Year 2 - 30,000 units

c) Figure the double declining balance depreciation for year one and year two. Assuming a 4 year life.

d) Figure partial year depreciation figuring that the equipment was purchased on October 1 - using SL Method.

e) Prepare the Depreciation Journal Entry for $3000.