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  3. 2. on february 17, 2012, marcel and nathaniel brai

2. On February 17, 2012, Marcel and Nathaniel Braiding, Inc. acquired equipment for $500,000. The...

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Accounting

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2. On February 17, 2012, Marcel and Nathaniel Braiding, Inc. acquired equipment for $500,000. The equipment had a useful life of 5 years and a salvage value of $100,000. Required: Compute the depreciation expense for years 2012 and 2013 under each of the following depreciation methods: (a) Straight-line method (b) Units of production method (Assuming the equipment is capable of being used for a maximum of 500,000 hours during its life and the equipment that was acquired on February 17, of 2012 was used for 120,000 hours in 2012 and used for 90,000 hours in 2013). 3. The equipment that has a cost of $120,000 and an accumulated depreciation of $70,000 was traded in for Machinery that has a fair market value of $100,000. The fair market value of the old equipment was set at $60,000. The transaction does not have commercial substance. Make necessary entries for the trade in of the asset. 4. The equipment that has a cost of $120,000 and an accumulated depreciation of $70,000 was traded in for Machinery that has a fair market value of $112,000. The fair market value of the old equipment was set at $125,000. The transaction does not have commercial substance. Make necessary entries for the trade in of the asset

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