Answered

Explore Westonci.ca, the premier Q&A site that helps you find precise answers to your questions, no matter the topic. Our Q&A platform offers a seamless experience for finding reliable answers from experts in various disciplines. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Super Saver Groceries purchased store equipment for $29,500. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $3,500. During the 10-year period, the company expects to use the equipment for a total of 13,000 hours. Super Saver used the equipment for 1,700 hours the first year.

Required:
Calculate depreciation expense for the first year, using each of the following methods. Round all amounts to the nearest dollar.
1. Straight-line.
2. Double-declining-balance.
3. Activity-based.

Sagot :

Answer:

a. $2,600

b. $5,900

c. $3400

Explanation:

straight line depreciation =( cost of asset - salvage value ) / useful life

($29,500 - $3500) / 10 = $2,600

Double declining = 2 x ( cost of asset / useful life )

(2 x $29,500) / 10 = $5,900

Activity based = ( hours used in year / total number of hours) x (cost of asset - salvage value)

(1700 / 13000) x ($29,500 - $3500) =$3400

Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.