Description of this paper

Air Pack Company purchased packaging equipment on...

Description

Solution


Question

Air Pack Company purchased packaging equipment on Jan 3, 2006 for 90000. The equipment was expected to have a useful life of three years, or 21000 operating hours and a residual value of 6000. The equipment was used for 8000 hours during 2006, 7500 hours in 2007, and 5500 hours in 2008. Instructions: Determine the amount of depreciation for the years ended Dec 31 2006, 2007, 2008, byt a. the straight line method b. the units-of-production method c. the double-declining0balance method. Also determine the total depreciation expense for the three years by each method. The following columnar heading are suggested for recording the depreciation expense amounts: Year Straight line method Units of production method Double declining balance method

 

Paper#6009 | Written in 18-Jul-2015

Price : $25
SiteLock