>> Accounting Basics
Equipment purchased at the beginning of the fiscal year for $360,000 is expected to have a useful life of 5 years, or 14,000 operating hours, and a residual value of $10,000. Compute the depreciation for the first and second years of use by each of the following methods.
a. Straight-line: First year $ Second year mce_markernbsp;
b. Units-of-production (1,200 hours first year; 2,250 hours second year): First year $ Second year mce_markernbsp;
c. Declining-balance at twice the straight-line rate: First year $ Second year $