Question

2. On January 1, Brentwood Cranes purchased a crane for $160,000 Brentwood expects the crane to remain useful for five years (1,200,000 lifts) and to have a residual value of $40,000. The company expects the crane to be used for 30.000 hits the first year Read the requirements a. Compute the first year depreciation expense on the crane using the straight line method Begin by selecting the formula to calculate the company's first year depreciation on the crane using the straight-line method. Then enter the amounts and calculate the depreciation for the first year = Straight line depreciation - X Requirements Compute the first-year depreciation expense on the crane using the following methods a. Straight-line b. Units of production (Round depreciation per unit to two decimals Round depreciation expense to the nearest whole dollar) Compute the first-year and second-year depreciation expense on the crane using the following method: c. Double declining balance (Round depreciation expense to the nearest whole dollar) Print Done Choose from any drop-down list and then click Check Answer Check Answer Clear All 7 parts remaining 11:07 PM - 11/20/2019 129/2019

super stuck please help

Answer 1

Page No 0 Answer 11 depreciation www expense on the crane using shaight line mochod или цих Coaf of Corane = $ 160,000 vsebut life e 5 years Residual value = $40000 Straight line depreciation cost - residual value usebul life 160.000 40,000 = $24000 .: Straight line depreciation - $24000 ( cost - residual value / osebul life = shaight line depreciation ( 16.060 - 40,000 DI 5. - $24000 lust enesten deucciation cxpense on the evene orging set of production depreciation metinced cast of Coane = $ 160,000 first ueci dcpecciaron WA V 1 view cxpense on the crane using JAMA

Page No ③ Repideal value = $40,000 Corsot to be depreciated - 160,000 - 40,000 = $120,000 Life time usage copacity is number of units = 1200,000 ofte first year usage in number of lifto = 80,000 lifts -first year depreciation per unit = 120,000 X 80,000 1200,000 1 farof year depreciation per unit =48000 fresk you & pecond yecem depreciation de prote cting the Crane using double declining balance method in cost of coratie = $160,000 Dooble delining snate = ax (when lite x100) E ax X160) : = @ X 20% = 40%

Page, no ② 4 Horst year depreciation = 160,000 X 40% = $64000 noritten down value of asset = 160,000 - 64000 = $96000 Second gear depreciation - 96000 X 40 % = $38400 .: Firof year depreciation 3 $64000 COURS Second year depreciation = $38400