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On January 1, 2013, Canseco Plumbing Fixtures purchased equipment for $40,000. Residual value at the end of an estimated four-year service life is expected to be $4,000. The company expects the machine to operate for 20,000 hours. The machine operated for 2,700 and 3,500 hours in 2013 and 2014, respectively.

a. Calculate depreciation expense for 2013 and 2014 using straight line method.
	Straight-Line Depreciation Choose Numerator: / Choose Denominator: = Annual Depreciation Expense / = Depreciation Expense / = Depreciation Expense 2013 2014

b.	Calculate depreciation expense for 2013 and 2014 using sum-of-the-years'-digits method. Sum-of-the-years' digits depreciation Depreciable Base x Rate per Year = Depreciation Expense 2013 x = 2014 x =

c.	Calculate depreciation expense for 2013 and 2014 using double-declining balance method. Depreciation for the Period End of Period Annual Period Beginning of Period Book Value Depreciation Rate Depreciation Expense Accumulated Depreciation Book Value 2013 2014

d.

Calculate depreciation expense for 2013 and 2014 using units-of-production method. Select formula for Units of Production Depreciation: Calculate 2013 depreciation expense: Depreciation per machine hour Machine hours in 2013 Depreciation in 2013 Calculate 2014 depreciation expense: Depreciation per machine hour Machine hours in 2014 Depreciation in 2014

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