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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.
Calculate basic precision and the total projected misstatement. Determine the incremental allowance for sampling risk and the upper misstatement limit.
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