UMET Co. purchased equipment on January 1, 2020, at a cost of $600,000. The equipment...
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Accounting
UMET Co. purchased equipment on January 1, 2020, at a cost of $600,000. The equipment is expected to have a service life of ten years, or 50,000 hours, and a residual value of $40,000. During 2020, the equipment was operated for 4,000 hours, and during 2021 it was operated for 7,000 hours.
Determine the depreciation expense and accumulated depreciation for this machine in 2020 and 2021 under each of the following depreciation methods.
Straight Line (Depreciation Expense & Accumulated Depreciation)
Hours Run (Depreciation Expense & Accumulated Depreciation)
