Modern Products Company purchased new packaging equipment for $245,000 on January 1, 2019. The equipment is expected to be used for 6 years, or 60,000 operating hours. It has an estimated salvage value of $5,000. The equipment was used for 10,000 hours in 2019, 15,000 hours in 2020, and 12,000 hours in 2021.
Compute annual depreciation expense for the first three years, using the straight-line method, the double-declining balance method, and the units of output method.
$\begin{array}{|c|c|c|c|}
\hline & \text { Straight-Line } & \begin{array}{c}
\text { Double-Declining } \
\text { Balance }
\end{array} & \text { Units of Output } \
\hline & \text { Method } & \text { Method } & \text { Method } \
\hline 2019 & & & \
\hline 2020 & & & \
\hline 2021 & & & \
\hline
\end{array}$

Question

Modern Products Company purchased new packaging equipment for $245,000 on January 1, 2019. The equipment is expected to be used for 6 years, or 60,000 operating hours. It has an estimated salvage value of $5,000. The equipment was used for 10,000 hours in 2019, 15,000 hours in 2020, and 12,000 hours in 2021.
Compute annual depreciation expense for the first three years, using the straight-line method, the double-declining balance method, and the units of output method.
 $\begin{array}{|c|c|c|c|}
\hline & \text { Straight-Line } & \begin{array}{c}
\text { Double-Declining } \
\text { Balance }
\end{array} & \text { Units of Output } \
\hline & \text { Method } & \text { Method } & \text { Method } \
\hline 2019 & & & \
\hline 2020 & & & \
\hline 2021 & & & \
\hline
\end{array}$

Quizplus · Accepted Answer

The Answer of Modern Products Company purchased new packaging equipment for $245,000 on January 1, 2019. The equipment is expected to be used for 6 years, or 60,000 operating hours. It has an estimated salvage value of $5,000. The equipment was used for 10,000 hours in 2019, 15,000 hours in 2020, and 12,000 hours in 2021.
Compute annual depreciation expense for the first three years, using the straight-line method, the double-declining balance method, and the units of output method.
 $\begin{array}{|c|c|c|c|}
\hline & \text { Straight-Line } & \begin{array}{c}
\text { Double-Declining } \
\text { Balance }
\end{array} & \text { Units of Output } \
\hline & \text { Method } & \text { Method } & \text { Method } \
\hline 2019 & & & \
\hline 2020 & & & \
\hline 2021 & & & \
\hline
\end{array}$

Modern Products Company Purchased New Packaging Equipment for $245,000 on January