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Green Bay Mfg

Question 87

Essay

Green Bay Mfg.Co.purchased equipment on January 1, 2010, at a cost of $800, 000.The equipment is expected to have a service life of ten years, or 40, 000 hours, and a residual value of $70, 000.During 2010, the equipment was operated for 5, 000 hours, and during 2011, it was operated for 7, 000 hours.
Required:
Determine the depreciation expense for this machine in 2010 and 2011 under each of the following depreciation methods:
20102011 a. Straight-line method  b. Activity method (hours ran)  c. Double declining balance method  d. Sum-of the-yeares digits method\begin{array}{llr}&2010&2011\\ \text { a. Straight-line method } &\underline{\quad\quad}&\underline{\quad\quad}\\ \text { b. Activity method (hours ran) } &\underline{\quad\quad}&\underline{\quad\quad}\\ \text { c. Double declining balance method } &\underline{\quad\quad}&\underline{\quad\quad}\\ \text { d. Sum-of the-yeares digits method} &\underline{\quad\quad}&\underline{\quad\quad}\\\end{array}

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