At the beginning of last year, Bratworth Corporation purchased a piece of heavy equipment for $86,000. TI equipment has a life of five years or 100,000 hours. The estimated residual value is $6,000, Bremond used equipment for 26,000 hours last year and 30,000 hours this year. Depreciation expense for year two using double-declining-balance (DDB) and units-of-production (UOP) methods would be as follows: (Carry all rates to two decimal places, .XX) O A. DDB $20,640 OB. DDB UOP $19,200 $24,000 OC. DDB $19,200 UOP $25,800 OD. DDB UOP $25,800 UOP $20,640 $24,000

At the beginning of last year, Bratworth Corporation purchased a piece of heavy equipment for $86,000. TI equipment has a life of five years or 100,000 hours. The estimated residual value is $6,000, Bremond used equipment for 26,000 hours last year and 30,000 hours this year. Depreciation expense for year two using double-declining-balance (DDB) and units-of-production (UOP) methods would be as follows: (Carry all rates to two decimal places, .XX) O A. DDB $20,640 OB. DDB UOP $19,200 $24,000 OC. DDB $19,200 UOP $25,800 OD. DDB UOP $25,800 UOP $20,640 $24,000

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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