Mountainview Resorts purchased equipment for $40,000.Residual value at the end of an estimated four-year service life is expected to be $8,000.The machine operated for 2,200 hours in the first year and the company expects the machine to operate for a total of 10,000 hours over its four year life.Calculate depreciation expense for the first year using each of the following depreciation methods: (1)straight-line, (2)double-declining-balance,and (3)activity-based.

Question

Quizplus · Accepted Answer

The Answer of Mountainview Resorts purchased equipment for $40,000.Residual value at the end of an estimated four-year service life is expected to be $8,000.The machine operated for 2,200 hours in the first year and the company expects the machine to operate for a total of 10,000 hours over its four year life.Calculate depreciation expense for the first year using each of the following depreciation methods: (1)straight-line, (2)double-declining-balance,and (3)activity-based.

Mountainview Resorts Purchased Equipment for $40,000