Question

On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $58,000. Residual value at the end of an estimated four-year service life is expected to be $10,000. The company expects the machine to operate for 15,000 hours. The machine operated for 3,600 and 4,400 hours in 2018 and 2019, respectively.

a. Calculate depreciation expense for 2018 and 2019 using straight line method.

	Straight-Line Depreciation Choose Numerator: / Choose Denominator: = Annual Depreciation Expense Cost minus Salvage / Estimated Useful Life (years) = Depreciation Expense / = 0 Depreciation Expense 2018 2019

b. Calculate depreciation expense for 2018 and 2019 using double-declining balance method.

Depreciation for the Period End of Period Annual Period Beginning of Period Book Value Depreciation Rate (%) Depreciation Expense Accumulated Depreciation Book Value 2018 50% $ $ 2019 50% c. Calculate depreciation expense for 2018 and 2019 using units-of-production method (using machine hours). (Round "Depreciation per machine hour" answers to 2 decimal places.) 0 Select formula for Units of Production Depreciation: (Cost - Salvage) / Total units of production Calculate 2018 depreciation expense: Depreciation per machine hour Machine hours in 2018 Depreciation in 2018 Calculate 2019 depreciation expense: Depreciation per machine hour Machine hours in 2019 Depreciation in 2019 $

Can somebody please answer this? this is the third time I'm posting it and each time the answer is wrong :-( thanks!!

Answer 1

a. Calculate depreciation expense for 2018 and 2019 using straight line method.

	Straight-Line Depreciation Choose Numerator: / Choose Denominator: = Annual Depreciation Expense Cost minus Salvage / Estimated Useful Life (years) = Depreciation Expense (58000-10000) / 4 = 12000 Depreciation Expense 2018 12000 2019 12000

b. Calculate depreciation expense for 2018 and 2019 using double-declining balance method.

Depreciation for the Period End of Period Annual Period Beginning of Period Book Value Depreciation Rate (%) Depreciation Expense Accumulated Depreciation Book Value 2018 58000 50% 29000 $29000 $29000 2019 29000 50% 14500 43500 14500 c. Calculate depreciation expense for 2018 and 2019 using units-of-production method (using machine hours). (Round "Depreciation per machine hour" answers to 2 decimal places.) 0 Select formula for Units of Production Depreciation: (Cost - Salvage) / Total units of production (58000-10000)/15000 3.20 per unit Calculate 2018 depreciation expense: Depreciation per machine hour 3.20 Machine hours in 2018 3600 Depreciation in 2018 11520 Calculate 2019 depreciation expense: Depreciation per machine hour 3.20 Machine hours in 2019 4400 Depreciation in 2019 $14080

Answer 2

I apologize for any previous mistakes. Let's calculate the depreciation expense for 2018 and 2019 using the straight-line method, double-declining balance method, and units-of-production method:

a. Straight-Line Depreciation: Cost minus Salvage / Estimated Useful Life (years) = Depreciation Expense

For 2018: ($58,000 - $10,000) / 4 = $12,000

For 2019: ($58,000 - $10,000) / 4 = $12,000

b. Double-Declining Balance Depreciation: Depreciation for the Period = Beginning of Period Book Value * Depreciation Rate (%)

For 2018: Beginning of Period Book Value = $58,000 Depreciation Rate = 2 * (100% / 4) = 50% Depreciation Expense = $58,000 * 50% = $29,000 Accumulated Depreciation = $29,000 (accumulated from 2018) Book Value = $58,000 - $29,000 = $29,000

For 2019: Beginning of Period Book Value = $29,000 Depreciation Rate = 2 * (100% / 4) = 50% Depreciation Expense = $29,000 * 50% = $14,500 Accumulated Depreciation = $29,000 + $14,500 = $43,500 Book Value = $29,000 - $14,500 = $14,500

c. Units-of-Production Depreciation (using machine hours): Depreciation per machine hour = (Cost - Salvage) / Total machine hours

Total machine hours = 15,000 hours

For 2018: Depreciation per machine hour = ($58,000 - $10,000) / 15,000 hours ≈ $3.20 (rounded to 2 decimal places) Machine hours in 2018 = 3,600 hours Depreciation in 2018 = $3.20 * 3,600 hours ≈ $11,520 (rounded to 2 decimal places)

For 2019: Depreciation per machine hour = ($58,000 - $10,000) / 15,000 hours ≈ $3.20 (rounded to 2 decimal places) Machine hours in 2019 = 4,400 hours Depreciation in 2019 = $3.20 * 4,400 hours ≈ $14,080 (rounded to 2 decimal places)

I hope these calculations are correct and helpful. If you encounter any issues or have further questions, please feel free to ask.