Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2016, nicholas company purchased off

On January 1, 2016, Nicholas Company purchased Office Equipment for $ 165,000 with an estimated...

80.2K

Verified Solution

Question

Accounting

On January 1, 2016, Nicholas Company purchased Office Equipment for $ 165,000 with an estimated useful life of 5 years, or 145,000 hours and a residual value of $ 20,000.
Compute the annual depreciation at the end of 2018, the 3rd year, under each of the following depreciation method for Nicholas Company:

1)  Straight-Line Method
2)  Units of Production Method, assume that a total of 70,000 hours were used in 2018.
3)  Double-Declining Balance Method

Using the Straight-Line Depreciation Method, calculate the amount of depreciation taken in 2018. (Round answers to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.)

Using the Units of Production Depreciation Method, calculate the Depreciation Cost per Hour and the amount of depreciation taken in 2018.

Using the Double-Declining Balance Depreciation Method, calculate the Double-Declining Balance (DDB) Rate then complete the table below for the years 2016 through 2018. (Round answers to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.)

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