Calculating depreciation expense using four different method

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Reference no: EM13918156

Calculating depreciation expense using four different methods [LO 3]

O'Brian Service Company purchased a copier on January 1, 2012, for $17,900 and paid an additional $150 for delivery charges. The copier was estimated to have a life of four years or 800,000 copies. Salvage was estimated at $1,400. The copier produced 226,000 copies in 2012 and 245,000 copies in 2013.

Required:

Costmce_markernbsp; Delivery Cost Total Less: Salvage Value Depreciable Costmce_markernbsp; ÷ = mce_markernbsp; per year 2012: mce_markernbsp; 2013: $

a. Compute the amount of depreciation expense for the copier for calendar years 2012 and 2013, using Units-of-production method. (Round "Cost per Copy" values to 2 decimal places. Input all amounts as positive values. Omit the "$" sign in your response.)


Total Estimated
[Cost - Salvage Value] ÷ Units of Production = Cost per Unit

mce_markernbsp; - $
	= mce_markernbsp; per Copy

	Cost per Copy	×	Current Units of Production	=	Annual Depreciation
2012:	mce_markernbsp;	×		=	mce_markernbsp;
2013:	mce_markernbsp;	×		=	mce_markernbsp;

b. Compute the amount of depreciation expense for the copier for calendar years 2012 and 2013, using Double-declining-balance method. (Round your "SL rate" values to 2 decimal places and other answers to the nearest dollar amount. Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.)

	(Cost - Acc. Depr. at Beginning of Period)	×	(2 × SL Rate)	=	Annual Depreciation
2012:	(mce_markernbsp; - )	×	(2 × )	=	$
2013:	(mce_markernbsp; - )	×	(2 × )	=	mce_markernbsp;

Reference no: EM13918156

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