Classic irons inc purchased manufacturing equipment with

Reference no: EM13451808

Classic Irons, Inc. purchased manufacturing equipment with an expected useful life of five years or 5000 hours of usage. The equipment was purchased on January 1, 2008 for $460,000. It is expected to have a salvage value of $60,000 at the end of five years. During 2008, the equipment was used for 1200 hours. Assume that usage for the next four years will be 1100 hours, 900 hours, 1300 hours and 500 hours, respectively.

a) What is the amount of depreciation expense for each of the five years using the straight line method?

b) What is the amount of depreciation expense for each of the five years using the double declining balance method?

c) What is the amount of depreciation expense for each of the five years using the units of production method?

Reference no: EM13451808

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