Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. carton, inc. purchased equipment on may 1, 2021, a

Carton, Inc. purchased equipment on May 1, 2021, at a cost of $54,000. It was...

60.1K

Verified Solution

Question

Accounting

image
Carton, Inc. purchased equipment on May 1, 2021, at a cost of $54,000. It was estimated that the equipment will have a useful life of 5 years, and a salvage value of $6,000 at the end of that time. Total estimated working hours are expected to be 24,000 hours, and total expected production for the equipment is 36,000 units. The equipment was operated for 7,000 hours in 2021 , and 5,000 hours in 2022. The equipment produced 4,000units in 2021, and 5,000 units in 2022 . REQUIRED: Calculate the depreciation expense for Carton to record for each of the years 2021 and 2022 separately, using the following methods: A) Straight-line method. B) Units of output method. C) Working hours method. D) Sum-of-the-years-digits method. E) Double-declining balance method

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students