Solution-Compute depreciation and the book value

Compute depreciation and the book value

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Reference no: EM132624822

Problem - On January 1, 2011, Hobart Mgf. Co. purchased a drill press at a Cost Of $56,000. The drill press is expected to last 10 years and have a residual value of $6,000. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2011 and 2012, 25,000 and 84,000 units, respectively, were produced.

Required =

1) Compute depreciation for 2011 and 2012 and the book value of the drill press at December 31, 2011 and 2012, assuming the straight-line method is used.

2) Compute depreciation for 2011 and 2012 and the book value of the drill press at December 31, 2011 and 2012, assuming the double-declining-balance method is used.

3) Compute depreciation for 2011 and 2012 and the book value of the drill press at December 31, 2011 and 2012, assuming the sum-of-the-years'-digits method is used.

4) Compute depreciation for 2011 and 2012 and the book value of the drill press at December 31, 2011 and 2012, assuming the units-of-production method is used.

Reference no: EM132624822

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Compute depreciation and the book value

Reference no: EM132624822

Reference no: EM132624822

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