On January 1, 2018, Canseco Plumbing Fixtures purchasedequipment for $58,000. Residual value at the end of an estimatedfour-year service life is expected to be $10,000. The companyexpects the machine to operate for 15,000 hours. The machineoperated for 3,600 and 4,400 hours in 2018 and 2019,respectively.
a. Calculate depreciation expense for 2018 and2019 using straight line method. (don't need)
b. Calculate depreciation expense for 2018 and2019 using sum-of-the-years'-digits method.
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| | Sum-of-the-years' digitsdepreciation | | Depreciable Base | x | Rate per Year | = | Depreciation Expense | | 2018 | | x | | = | | | 2019 | | x | | = | |
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C. Calculate depreciation expense for 2018 and 2019 usingdouble-declining balance method.
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| | Depreciation for the Period | End of Period | | Annual Period | Beginning of Period Book Value | Depreciation Rate (%) | Depreciation Expense | Accumulated Depreciation | Book Value | | 2018 | | | | | | | 2019 | | | | | |
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d. Calculate depreciation expense for 2018 and2019 using units-of-production method (using machine hours).
(Round "Depreciation per machine hour" answers to 2 decimalplaces.)
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| | Select formula for Units of ProductionDepreciation: | | | Calculate 2018 depreciationexpense: | | Depreciation per machine hour | | | Machine hours in 2018 | | | Depreciation in 2018 | | | Calculate 2019 depreciationexpense: | | Depreciation per machine hour | | | Machine hours in 2019 | | | Depreciation in 2019 | |
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