Norton Construction Company purchased a cement mixer for $14500. The mixer is expected to have...
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Norton Construction Company purchased a cement mixer for $14500. The mixer is expected to have a useful life of five years and a residual value of $1000. The company engineers estimate the mixer will have a useful life of 7500 hours, of which 2625 hours were used in 2022. The companys yearend is December 31.
1. Compute the depreciation expense for 2022 assuming the cement mixer was purchased on January 1, 2021, using the following four methods: (a) straightline, (b) production, (c) sum of the years digits, (d) double declining balance.
2. Compute the depreciation expense for 2022 assuming the cement mixer was purchased on July 1, 2021, suing the following methods: (a) straightline, (b) production, (c) sum of the years digits, (d) double declining balance.
3. Prepare the adjusting entry to record the depreciation calculated in 1(a).
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