Calculate the depreciation on the equipment in the two years

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James Company bought equipment for $460,000 on 22 February 20Y1. The machine had an estimated residual value of $60,000, and had estimated useful life of 10 years, or had an estimated operation output of 100,000 hours. The year-end date of the company is 31 December.

Problem 1: Calculate the depreciation on the equipment in these two years using the following methods.

(i) Straight-line (using half-year convention)
(ii) 200%-declining-balance (using full-year depreciation in the first year)
(iii) Units-of-output method (hours of operation: 10,000 in 20Y1; 12,000 in 20Y2)

Reference no: EM132696314

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