Moore,Inc.purchased slot machines at the beginning of 2017 for $20,000.The machines have an estimated residual value of $2,000 and an estimated life of five years or 20,000 hours of operation.Moore is looking at alternative depreciation methods for the equipment.Calculate the following:
A. Accumulated depreciation at December 31,2018 , using the straight-line depreciation method.

B. Depreciation expense for 2017 using the units-of-production depreciation method. Assume that the machines are operated for 5,000 hours in 2017 .

C. Book value of the equipment at December 31,2018, using the double-declining-bal ance depreciation method.

D. What are the advantages of using straight-line depreciation for financial reporting purposes?

Question

Moore,Inc.purchased slot machines at the beginning of 2017 for $20,000.The machines have an estimated residual value of $2,000 and an estimated life of five years or 20,000 hours of operation.Moore is looking at alternative depreciation methods for the equipment.Calculate the following:
 A. Accumulated depreciation at December 31,2018 , using the straight-line depreciation method.

B. Depreciation expense for 2017 using the units-of-production depreciation method. Assume that the machines are operated for 5,000 hours in 2017 .

C. Book value of the equipment at December 31,2018, using the double-declining-bal ance depreciation method.

D. What are the advantages of using straight-line depreciation for financial reporting purposes?

Quizplus · Accepted Answer

The Answer of Moore,Inc.purchased slot machines at the beginning of 2017 for $20,000.The machines have an estimated residual value of $2,000 and an estimated life of five years or 20,000 hours of operation.Moore is looking at alternative depreciation methods for the equipment.Calculate the following:
 A. Accumulated depreciation at December 31,2018 , using the straight-line depreciation method.

B. Depreciation expense for 2017 using the units-of-production depreciation method. Assume that the machines are operated for 5,000 hours in 2017 .

C. Book value of the equipment at December 31,2018, using the double-declining-bal ance depreciation method.

D. What are the advantages of using straight-line depreciation for financial reporting purposes?

Moore,IncPurchased Slot Machines at the Beginning of 2017 for $20,000