Straight-line method and units-of-output method

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Reference no: EM13823331

Razar Sharp Company purchased equipment on July 1, 2012, for $58,320. The equipment was expected to have a useful life of three years, or 5,400 operating hours, and a residual value of $1,620. The equipment was used for 1,000 hours during 2012, 1,900 hours in 2013, 1,600 hours in 2014, and 900 hours in 2015.

Required:

Determine the amount of depreciation expense for the years ended December 31, 2012, 2013, 2014, and 2015, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method.

Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.

a. Straight-line method

Year Amount

2012 $

2013 $

2014 $

2015 $

b. Units-of-output method

Year Amount

2012 $

2013 $

2014 $

2015 $

c. Double-declining-balance method

Year Amount

2012 $

2013 $

2014 $

2015 $

Reference no: EM13823331

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