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On April 22, 2016, Blossom Enterprises purchased equipment for $130,000. The company expects to use the...

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Accounting


On April 22, 2016, Blossom Enterprises purchased equipment for$130,000. The company expects to use the equipment for 10,500working hours during its 4-year life and that it will have aresidual value of $12,000. Blossom has a December 31 year end andpro-rates depreciation to the nearest month. The actual machineusage was: 1,500 hours in 2016; 2,500 hours in 2017; 3,500 hours in2018; 2,200 hours in 2019; and 1,000 hours in 2020.
Calculate depreciation expense for the life of the asset understraight-line method.diminshing balance .and unites ofproduction

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Blossom Enterprises Computation of the depreciation expense for the life of the asset under Straightline Method Depreciation expense depreciable base x 1useful life Depreciable base cost residual value Cost of equipment 130000 Residual value 12000 Useful life 4 years Depreciable base 130000 12000 118000 Annual depreciation expense 1180004 29500 Depreciation expense for 2016 May December 29500 x 812 19667 Since the annual depreciation expense would remain constant throughout the useful life of the asset the annual depreciation expense for all the four years through 2019 29400 Note Since the asset is purchased in April    See Answer
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