Amwaj Indstrial Co. purchased an equipment for $720,000 on 1 Jan. 2020. It is estimated that the equipment will have a 10-year useful life or 350,000 units over its useful life and its salvage value at the end of useful life is estimated as $20,000. Required: Compute the depreciation expense for the year ended December 31, 2020, using the following methods of depreciation. (Please, SHOW YOUR CALCULATIONS): 1. Straight-line method of depreciation. 2. Units-of-production method of depreciation assuming that the company produced 42,000 units in 2020. 3. Double-declining-balance method of depreciation.

Amwaj Indstrial Co. purchased an equipment for $720,000 on 1 Jan. 2020. It is estimated that the equipment will have a 10-year useful life or 350,000 units over its useful life and its salvage value at the end of useful life is estimated as $20,000. Required: Compute the depreciation expense for the year ended December 31, 2020, using the following methods of depreciation. (Please, SHOW YOUR CALCULATIONS): 1. Straight-line method of depreciation. 2. Units-of-production method of depreciation assuming that the company produced 42,000 units in 2020. 3. Double-declining-balance method of depreciation.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...

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