Layton Company purchased tool sharpening equipment on October 1 for $70,200. The equipment was expected to have a useful life of three years or 4,860 operating hours, and a residual value of $2,160. The equipment was used for 900 hours during Year 1, 1,700 hours in Year 2, 1,500 hours in Year 3, and 760 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.

Layton Company purchased tool sharpening equipment on October 1 for $70,200. The equipment was expected to have a useful life of three years or 4,860 operating hours, and a residual value of $2,160. The equipment was used for 900 hours during Year 1, 1,700 hours in Year 2, 1,500 hours in Year 3, and 760 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.

Name: Depreciation by Three Methods; Partial YearsLayton Company purchased t
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Description: Depreciation by Three Methods; Partial YearsLayton Company purchased tool sharpening equipment on October 1 for $70,200. The equipment was expected to have a useful life of three years or 4,860 operating hours, and a residual value of $2,160. The equ

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter27: Lean Principles, Lean Accounting, And Activity Analysis

Section: Chapter Questions

Problem 27.20EX

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