1 min read
Porter Business Products_Depreciation Methods
| Problem 1 | |||||||
| Porter Business Products acquired equipment on January 1, 2012 for $470,000. The equipment has an estimated useful life of 5 years and an estimated residual value of $30,000. The equipment is expected to produce 150,000 units. | |||||||
| During 2012, the equipment produced 24,000 units and during 2013 the equipment produced 60,000 units. | |||||||
| Calculate depreciation expense for 2012 and 2013 under each of the following methods. No Journal entries required. | |||||||
| Depreciation Method | 2012 | 2013 | |||||
| Straight Line | |||||||
| Double Declining balance | |||||||
| Units of production |
