Breyer Company purchased packaging equipment on January 3, 2010, for $101,250. The equipment was expected to have a useful life of three years, or 25,000 operating hours, and a residual value of $7,500. The equipment was used for 9,500 hours during 2010, 8,400 hours in 2011, and 7,100 hours in 2012.
Instructions:
1. Determine the amount of depreciation expense for the years ended December 31, 2010, 2011, and 2012, by the Straight-Line Method, the Units-of-Production Method, and the Double-Declining-Balance Method. Also determine the total depreciation expense for the three years by each method.
|
| Year |
Straight-Line Method |
Units-of-Production Method |
Double-Declining-Balance Method |
| 2010 |
$ |
$ |
$ |
| 2011 |
$ |
$ |
$ |
| 2012 |
$ |
$ |
$ |
| Total |
$ |
$ |
$ |
2. What method yields the highest depreciation expense for 2010?
The input in the box below will not be graded, but may be reviewed and considered by your instructor.blank
3. What method yields the most depreciation over the three-year life of the equipment?The input in the box below will not be graded, but may be reviewed and considered by your instructor.