Straight line-doubling declining and production methods

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Classic Ions, nc. purchased manufacturing equipment with an expected useful life of five years or 5,000 hours of usage. The equipment was purchased on Janruary 1, 2008, for $460,000. It is expected to have a salvage value of $60,000 at the end of 5 years. During 2008, the equipment was used for 1,200 hours. Assume the usage for the next four years will be 1,100 hours, 900 hours, 1,300 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 doubling declining method?

C. What is the amount of depreciation expense for each of the five years using the production method?

Reference no: EM1362748

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