On May 1, 2011, Dominquez Inc. purchased equipment at a cost of $280,000. The equipment has an estimated salvage value of $12,000 and is being depreciated over an estimated life of six years. The company's policy is to recognize depreciation to the nearest whole month.
Compute the depreciation expense (rounded to the nearest dollar) on this equipment for the years ended December 31, 2011 and 2012, using
a. Double-cleclining-balance
b. Sum-of-the-years-digits
c. Straight line

Question

On May 1, 2011, Dominquez Inc. purchased equipment at a cost of $280,000. The equipment has an estimated salvage value of $12,000 and is being depreciated over an estimated life of six years. The company's policy is to recognize depreciation to the nearest whole month.
Compute the depreciation expense (rounded to the nearest dollar) on this equipment for the years ended December 31, 2011 and 2012, using
 a. Double-cleclining-balance 
b. Sum-of-the-years-digits 
c. Straight line

Quizplus · Accepted Answer

The Answer of On May 1, 2011, Dominquez Inc. purchased equipment at a cost of $280,000. The equipment has an estimated salvage value of $12,000 and is being depreciated over an estimated life of six years. The company's policy is to recognize depreciation to the nearest whole month.
Compute the depreciation expense (rounded to the nearest dollar) on this equipment for the years ended December 31, 2011 and 2012, using
 a. Double-cleclining-balance 
b. Sum-of-the-years-digits 
c. Straight line