) On January 3, 2011, Robby’s Excavating Company purchased a bulldozer for $140,000. In addition to the basic purchase price, the company paid sales tax of $6,000 and freight charges of $8,000. The bulldozer will be used for 36,000 machine hours. Robby estimates that the bulldozer will have a useful life of 5 years and no residual value. Required:I. Compute the cost of the asset.II. Compute the depreciation expense for 2011 and 2012 using the:i. straight-line methodii. units-of production method assuming the bulldozer was used 5,000 machine hours in 2011 and 20,000 machine hours in 2012.iii. double declining balance method
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