Answered

At Westonci.ca, we connect you with the answers you need, thanks to our active and informed community. Experience the ease of finding accurate answers to your questions from a knowledgeable community of professionals. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

Layton Company purchased tool sharpening equipment on October 1, 2012, for $108,000. The equipment was expected to have a useful life of three years, or 12,000 operating hours, and a residual value of $7,200. The equipment was used for 1,350 hours during 2012, 4,200 hours in 2013, 3,650 hours in 2014, and 2,800 hours in 2015.Required: Determine the amount of depreciation expense for the years ended December 31, 2012, 2013, 2014, and 2015, by:(a) the straight-line method,(b) units-of-output method, and(c) the double-declining-balance method.Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.

Sagot :

anthougo

The amount of depreciation expense for the years ended December 31, 2012, 2013, 2014, and 2015, for Layton Company is determined as follows:

(a) the straight-line method:

2012:    $33,600

2013:   $33,600

2014:   $33,600

2015:   $0

(b) the units-of-output method:

2012:    $11,340 (1,350 x $8.40)

2013:   $35,280 (4,200 x $8.40)

2014:   $30,660 (3,650 x $8.40)

2015:   $23,520 (2,800 x $8.40)

(c) the double-declining-balance method:

2012:    $71,993 ($108,000 x 0.6666)

2013:   $24,002 ($36,007 x 0.6666)

2014:   $4,805 ($12,005 - 7,200))

2015:   $0

Data and Calculations:

Cost of equipment = $108,000

Useful life = 3 years

Operating hours = 12,000

Residual value = $7,200

Depreciable amount = $100,800 ($108,000 - $7,200)

Straight-line depreciation rate = $33,600 per year ($100,800/3)

Units-of-output method rate = $8.40 per hour ($100,800/12,000)

Double-declining-balance method rate = 66.6666 (100/3)

Thus, the depreciation expenses for the years ended December 31, 2012, 2013, 2014, and 2015, for Layton Company have been determined using (a) the straight-line method, (b) the units-of-output method, and (c) the double-declining-balance method.

Learn more depreciation methods at https://brainly.com/question/17102168

#SPJ1

We appreciate your time. Please come back anytime for the latest information and answers to your questions. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.