Acc121 Survey of Accounting: P7-2 Seal Coatings Company purchased waterproofing equipment

Acc121 Survey of Accounting
P7-2 Compare two depreciation methods
Seal Coatings Company purchased waterproofing equipment on January 2, 2007 for $475,000. The equipment was expected to have a useful life of 4 years,and a residual value of $45,000.

Instructions:
1. Determine the amount of depreciation expense for the years ended December 31, 2007, 2008, 2009 and 2010 by:
a) straight-line method:
b) double-declining method:
2. Also determine the total depreciation expense for the 4 years by each method. The following columnar headings are suggested for recording the depreciation expense amounts.
Powered by