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Layton Company purchased tool sharpening equipment on October i 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. a. Straight-line method Year Amount Year 1 $4 Year 2 $ Year 3 Year 4 $

Layton Company purchased tool sharpening equipment on October i 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. a. Straight-line method Year Amount Year 1 $4 Year 2 $ Year 3 Year 4 $

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 3CE: A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years....
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b. Units-of-activity method Year Amount Year 1 $ Year 2 2$ Year 3 Year 4 c. Double-declining-balance method Year Amount Year 1 Year 2 $ Year 3 Year 4 $4 %24 %24 %24 %24 %24
Transcribed Image Text:b. Units-of-activity method Year Amount Year 1 $ Year 2 2$ Year 3 Year 4 c. Double-declining-balance method Year Amount Year 1 Year 2 $ Year 3 Year 4 $4 %24 %24 %24 %24 %24
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. a. Straight-line method Year Amount Year 1 Year 2 Year 3 Year 4
Transcribed Image Text: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. a. Straight-line method Year Amount Year 1 Year 2 Year 3 Year 4
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