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Razar Sharp Company purchased equipment on July 1, 2010, for $22,140. The equipment was expected to have a useful life of three years, or 4,320 operating hours, and a residual value of $540. The equipment was used for 800 hours during 2010, 1,500 hours in 2011, 1,300 hours in 2012, and 720 hours in 2013.
Instructions:
1. Determine the amount of depreciation expense for the years ended December 31, 2010, 2011, 2012, and 2013, by the straight-line method, the units-of-production method, and the double-declining-balance method. Do not round your intermediate calculations but round final answers to the nearest dollar.
Assume the percentage-of-completion method of revenue recognition is used on a long term construciton contract. Under this method, revenues that are earned but unbilled at the balance sheet date should be disclosed
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