How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask JKCPA Your Own Question
JKCPA
JKCPA, CPA
Category: Finance
Satisfied Customers: 5883
Experience:  Bachelors degree and CPA with Accounting experience.
23848519
Type Your Finance Question Here...
JKCPA is online now
A new question is answered every 9 seconds

Century Company purchased equipment on January 1, 2011, for

This answer was rated:

Century Company purchased equipment on January 1, 2011, for $60,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life.

INSTRUCTIONS
Answer the following independent questions. Show your computations. Pay attention to dates.

- Compute the amount of depreciation expense for the year ended December 31, 2011, using the straight line method of depreciation.

- If 16,000 units of product are produced in 2011 and 24,000 are produced in 2012, what is the book value of the equipment at December 31, 2012? The company uses the units-of-activity depreciation method.

- If the company uses the double declining balance method of depreciation, what is the balance of the Accumulated depreciation-Equipment account at December 31, 2014?
Hi,

Thanks for the question.

Please click here for the solution.

Hope this helps!


If you would like to request me for future posts, please put 'For JKCPA' at the beginning of them.
JKCPA and 3 other Finance Specialists are ready to help you