Modern Products Company purchased new packaging equipment for $245,000 on January 1, 2013. 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 2013, 15,000 hours in 2014, and 12,000 hours in 2015.
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. $$\begin{array} { | c | c | c | c | }
\hline & \text { Straight-Line } & \begin{array} { c }
\text { Double- } \
\text { Declining } \
\text { Balance }
\end{array} & \begin{array} { c }
\text { Units of } \
\text { Output }
\end{array} \
\hline & \text { Method } & \text { Method } & \text { Method } \
\hline 2013 & & & \
\hline 2014 & & & \
\hline 2015 & & & \
\hline & & & \
\hline
\end{array}$$

Question

Modern Products Company purchased new packaging equipment for $245,000 on January 1, 2013. 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 2013, 15,000 hours in 2014, and 12,000 hours in 2015.
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. $$\begin{array} { | c | c | c | c | } 
\hline & \text { Straight-Line } & \begin{array} { c } 
\text { Double- } \
\text { Declining } \
\text { Balance }
\end{array} & \begin{array} { c } 
\text { Units of } \
\text { Output }
\end{array} \
\hline & \text { Method } & \text { Method } & \text { Method } \
\hline 2013 & & & \
\hline 2014 & & & \
\hline 2015 & & & \
\hline & & & \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Modern Products Company purchased new packaging equipment for $245,000 on January 1, 2013. 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 2013, 15,000 hours in 2014, and 12,000 hours in 2015.
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. $$\begin{array} { | c | c | c | c | } 
\hline & \text { Straight-Line } & \begin{array} { c } 
\text { Double- } \
\text { Declining } \
\text { Balance }
\end{array} & \begin{array} { c } 
\text { Units of } \
\text { Output }
\end{array} \
\hline & \text { Method } & \text { Method } & \text { Method } \
\hline 2013 & & & \
\hline 2014 & & & \
\hline 2015 & & & \
\hline & & & \
\hline
\end{array}$$

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