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Seved 15 Brief Exercise 11-3 (Algo) Depreciation methods; partial periods [LO11-2) 57 ints On March 31, 2021, Canseco Plumbing Faxtures purchased equipment for $44,000. Residual value at the end of an estimated four-year service life Is expected to be $8,000. The company expects the equipment to operate for 20,000 hours. The equipment operated for 2,900 and 3,700 hours in 2021 and 2022, respectively Skipped Required: a. Calculate depreciation expense for 2021 and 2022 using straight line method b. Calculate depreciation expense for 2021 and 2022 using double-declining balance method c. Calculate depreciation expense for 2021 and 2022 using units-of-production using hours operated. eBook Complete this question by entering your answers in the tabs below. Print References Required A Required B Required C Calculate depreciation expense for 2021 and 2022 using straight line method. Straight Line Depreciation Choose Numerator: Choose Denominator Annual Depreciation Annual Deprecialion Year Annual Depreciation Depreciation Expense Fraction of Year 2021 0x 2022 0 Required B ReevedA

Answer 1

Answer"- (a) straight line methods - Annucu depreciation Numerator denominator - Annual depreciation cost salvage value / useful life $ 9000 $44000 – $6000 / 4 years Fraction of noreciation Year Annuar depreciation Fractus year Depreciation Expense (x) 075 = $6750 2021 $ 9000 $ 9000 ( x $ 9000 12m = 1,00 = 2012 12 O double declining balance method :- Ixloo of per straught line melho - E Lesente xloo Depreciation rate = 2501 :raite as per double declining balance = 2x25% 50%. Annual period Beginning Book Value Depreciation rate Fiction of year pepreciabon Expense Accumulated depreciation $16500 Book Value $27500 am-01 $16500 50'. 2021 $ 44000 $27500 504 12m 1 $13.750 2012 $30,250 $13750

(C) Units of production method: - Depreciation rate per unit - cost - salvage Value Total expected houy = $44000 – $8000 20,000 hours $108 per unit = calculate 2021 depreciation expense: $ 1.8 2900 Depreciation per machine hour machine hours in 2011 Depreciation in 2021 ( $ 108 X2900) $ 5220 $1.8 calculate d 2022 depreciation Experie: Depreciation per machine hour machine hours in 2012 Depreciatiòn in 2012 ($118 x 3700) 3700 $ 6660