Required information
[The following information applies to the questions
displayed below.]
On October 1, 2021, the Allegheny Corporation purchased equipment
for $323,000. The estimated service life of the equipment is 10
years and the estimated residual value is $4,000. The equipment is
expected to produce 550,000 units during its life.
Required:
Calculate depreciation for 2021 and 2022 using each of the
following methods. Partial-year depreciation is calculated based on
the number of months the asset is in service.
1. Straight line.
Calculate depreciation
2021 | 2022 | |
Depreciation expense | (323000-4000/10*3/12) = 7975 | (323000-4000/10) = 31900 |
Required information [The following information applies to the questions displayed below.] On October 1, 2021, the...
Required information [The following information applies to the questions displayed below.) On October 1, 2021, the Allegheny Corporation purchased equipment for $224,000. The estimated service life of the equipment is 10 years and the estimated residual value is $4,000. The equipment is expected to produce 400,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. 1. Straight...
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(The following information applies to the questions displayed below.) On October 1, 2021, the Allegheny Corporation purchased equipment for $267,000. The estimated service life of the equipment is 10 years and the estimated residual value is $3,000. The equipment is expected to produce 480,000 units during its life. Required: Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service. 1. Straight line Straight-Line...
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