Reference no: EM132682264

Problem - Depreciation by three methods; partial years

Security IDs Company purchased equipment on July 1, 2010, for $135,000. The equipment was expected to have a useful life of three years, or 12,000 operating hours, and a residual value of $6,000. The equipment was used for 1,500 hours during 2010, 3,500 hours in 2011, 5,000 hours in 2012, and 2,000 hours in 2013.

Instructions -

Determine the amount of depreciation expense for the years ended December 31, 2010, 2011, 2012, and 2013, by (a) the straight-line method (b) the units-of-production method (c) the double-declining-balance method. Round to the nearest dollar.