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Canseco Plumbing Fixtures: Depreciation Expense

On January 1, 2011, Canseco Plumbing Fixtures purchased equipment for $30,000. Residual value at the end of an estimated four-year service life is expected to be $2,000. The company expects the machine to operate for 10,000 hours. Calculate depreciation expense for all fours years of the useful life using each of the following depreciation methods: (a) using a straight line (b) double declining balance and (c) units of production. The machine operated for 2,200 and 3,000 hours in 2011 and 2012, and assume 2,400 actual machine hours for both 2013 and 2014.

Solution Summary

Canseco Plumbing Fixtures: Depreciation methods: All four Years: straight line, double declining method, units of productions (machine hours). The solution is in Excel giving you a template for similar problems with different data.