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On April 1, 2016, CCI took delivery of a new surgical laser purchased at a cost of $88,000. The laser is expected to have a useful life of 5 years or 10,000 hours. The estimated residual value is $4,000.

Calculate the depreciation expense for the years ending December 31, 2016 and 2017 under hte double diminishing balance AND units of activity method. Provide detailed supporting calculations.

Note: The doctors have advised that CCI expects the laser will be used 1,600 hours during the year ending December 31, 2016 and 2,400 hours during the years ending December 31, 2017.

Which method of determing depreciation would be most appropriate for the laser, the straight line method can be considered also. Explain.

Caring Clinic Inc. (CCI) provides cosmetic procedures and surgeries not funded by Health. On April 1, 2016, CCI took delivery of a new surgical laser purchased at a cost of exist88,000. The laser is expected to have a useful life 5 year or 10,000 hours. The estimated residual value in exist4,000. CCI's doctors know that there are different ways to depreciate the laser, but they are not familiar with the details. You CCI's accountant, have been asked to calculate the depreciation expense for the years ending December 31, 2016 and 2017 under the double diminishing balance AND units of activity methods. You plan to provide detailed supporting calculations to allow the doctors to understand your work and round all amounts to the nearest dollar. Double Diminishing Balance Method. The doctors have asked which of the methods of determining depreciation would be MOST appropriate for the laser. Although they did not ask for a demonstration of the straight line method due to its simplicity, it is still an option. They have asked that you BRIEFLY EXPLAIN the reasoning for your recommendation

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