On January 3, 2020, Xenex Innovations purchased computer equipment for $145,000. The equipment will be used in research and development activities for five years or a total of 10,000 hours and then sold for about $24,000. Assume actual usage in hours of: 2020 2021 2022 2023 3,080 2024 1,850 1,880 3,400 3,700 Required: Calculate depreciation expense and book values for each year of the equipment's life for each method of depreciation using the table provided below. Xenex's year-end is December 31. (Do not round intermediate calculations.) Double Declining-Balance Book Value at December 31 Straight-Line Units-of-Producdion Depreciation Expenas Depreciation Book Value at Depreciation December 31 Book Value at December 31 Year Expense Expense 2020 2021 2022 2023 2024
On January 3, 2020, Xenex Innovations purchased computer equipment for $145,000. The equipment will be used in research and development activities for five years or a total of 10,000 hours and then sold for about $24,000. Assume actual usage in hours of: 2020 2021 2022 2023 3,080 2024 1,850 1,880 3,400 3,700 Required: Calculate depreciation expense and book values for each year of the equipment's life for each method of depreciation using the table provided below. Xenex's year-end is December 31. (Do not round intermediate calculations.) Double Declining-Balance Book Value at December 31 Straight-Line Units-of-Producdion Depreciation Expenas Depreciation Book Value at Depreciation December 31 Book Value at December 31 Year Expense Expense 2020 2021 2022 2023 2024
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 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...
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