Big Valley Ltd. purchased machinery on January 2, 2012, at a total cost of $85,000. The machinery's estimated useful life is 8 years or 60,000 hours, and its residual value is $5,000. During 2012 and 2013, the machinery was used 7,000 and 7,500 hours, respectively.
Compute depreciation under straight-line, units-of-production, and double-declining-balance methods for 2012 and 2013.
Double-declining-balance

Question

Big Valley Ltd. purchased machinery on January 2, 2012, at a total cost of $85,000. The machinery's estimated useful life is 8 years or 60,000 hours, and its residual value is $5,000. During 2012 and 2013, the machinery was used 7,000 and 7,500 hours, respectively.
Compute depreciation under straight-line, units-of-production, and double-declining-balance methods for 2012 and 2013.
  Double-declining-balance

Quizplus · Accepted Answer

The Answer of Big Valley Ltd. purchased machinery on January 2, 2012, at a total cost of $85,000. The machinery's estimated useful life is 8 years or 60,000 hours, and its residual value is $5,000. During 2012 and 2013, the machinery was used 7,000 and 7,500 hours, respectively.
Compute depreciation under straight-line, units-of-production, and double-declining-balance methods for 2012 and 2013.
  Double-declining-balance