Determine the amount of depreciation expense
Course:- Financial Accounting
Reference No.:- EM13491768

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Accounting

Air Pack Company purchased packaging equipment on January 3, 2006, for $90,000. The equipment was expected to have a useful life of three years, or 21,000 operating hours, and a residual value of $6,000. The equipment was used for 8,000 hours during 2006, 7,500 hours in 2007, and 5,500 hours in 2008.


Determine the amount of depreciation expense for the years ended December 31, 2006, 2007 and 2008, by (A) the straight-line method (B) the units-of-production method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the three years by each method. The following columnar headings are suggested for recording the depreciation expense amounts:

Year   Straight-line method  Units-of-production method  Double-declining-balance method


Put your comment

Ask Question & Get Answers from Experts
Browse some more (Financial Accounting) Materials
Don't all consolidations end up with one of the companies dominating? Isn't it the nature of the beast? So, did pooling of interests ever make any sense in terms of two compan
Sofia expects to earn $3800 from her summer job and $1500 from working as a babysitter. She receives gifts worth $400 from her friends and family on her birthday. A scholarshi
What potentially effective and absolutely legal methods of managing gross income in order to reduce or defer tax liability are there? Incorporate how this might be planned and
Evaluate the direct materials price and efficiency variances for the year and evaluate the direct labor price and efficiency variances for the year and determine the efficienc
What are the most common budgets used by manufacturing organizations? What are the most common budgets used by service organizations? Provide some examples of how these types
Russell Corporation sold a parcel of land valued at $477,500. Its basis in the land was $360,512. What is Russell's realized gain on the transaction? What is Russell's recogni
In 2014, Emilio, who is 82 years old, transfers property with an adjusted cost base of $400,000 and a fair market value of $750,000 to an inter vivos family trust to benefit h
One year ago you purchased 100 shares of Apple stock for $110.00 per share. During the year you were paid total dividends of $4 per share owned and today the stock is worth $1