Problem
Razar Sharp Company purchased equipment on July 1, 2014, for $55,080. The equipment was expected to have a useful life of three years, or 5,940 operating hours, and a residual value of $1,620. The equipment was used for 1,100 hours during 2014, 2,100 hours in 2015, 1,800 hours in 2016, and 940 hours in 2017.
Required:
Determine the amount of depreciation expense for the years ended December 31, 2014, 2015, 2016, and 2017, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method.