Double-declining-balance depreciation method

Assignment Help Accounting Basics

Reference no: EM13131550

A company purchased equipment at the beginning of 2006 for $60,000. There was an additional cost of $2,000 for delivery of the equipment to its plant and $1,000 for installation of the equipment. The equipment has an estimated residual value of $7,000 and an estimated life of 7 years or 70,000 hours of operation. Calculate the following:

A. Depreciation expense for the year 2006 using the straight-line depreciation method.

B. Depreciation expense assuming that the equipment is operated for 15,000 hours in 2006 and 12,000 hours in 2007.

C. Using the double-declining-balance depreciation method.

Reference no: EM13131550

Questions Cloud

Compute the total dividends paid : Determine the amount of dividends paid each year to each of the two classes of stockholders. also, compute the total dividends paid to each class for the 4 years combined.

Probability snowball not strike anything else while falling : The snowball strikes the ground if it doesn't strike anything else while falling? (b) A man 1.9 m tall is standing 4 m from the edge of the barn. Will the snowball hit him?

What is the molarity of h3po4 : A solution of 0.264 M NaOH is used to neutralized 54.0 mL H3PO4 solutions. if 1.0 mL of NaOH is required to reach end point what is the molarity of H3PO4

Root mean square deviation : If there are 50 pieces of data which range from 0 to 100: With a mean of 60 and Root mean square deviation of 8 show that only 1 piece of data can equal 100

Double-declining-balance depreciation method : A. Depreciation expense for the year 2006 using the straight-line depreciation method. B. Depreciation expense assuming that the equipment is operated for 15,000 hours in 2006 and 12,000 hours in 2007. C. Using the double-declining-balance depreciati..

Annualized forward premium for british bound : The spot rate of the British pound to the dollar is 1.68 ($/£). The 180 day forward rate is $1.71, what is the annualized forward premium?

By what percentage can the number of oil changes : If the current level of oil changes is 6600, by what percentage can the number of oil changes decrease before Jim has to worry about having a net loss?

Compute the temperature of the gas in degrees celsius : 53.5 g of an ideal gas of molecular weight = 30.5 g/mol are confined at a pressure of 133 mmHg. The density of the gas is 0.228 g/L. Compute the temperature of the gas in degrees Celsius.

Positive and predictive value negative : Given the following information, calculate the Predictive value positive and the predictive value negative.

User Account

All Pages