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Breyer Company purchased packaing equipmenton january 3, 2010, for $101,250. The equipment was expected to have a useful life of three years, or 25,000 operating hours, and a residual value of $ 7,500. The equipment was used for 9,500 hours during 2010, 8,400 hours in 2011, ad 7,100 hours in 2012.
Instructions
1.Determine the amount of Depreciation expense for years ended Dec. 31,2010, 2011, and 2012, by (a) the straight-line method, (b) the units-of-production method, and (c) the double-declining-balance method. Als determine the total depreciation expense for three years y each method. The following columnar headings are suggested for recording he depreciation expense amounts.
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