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Category > Business & Finance Posted 10 Dec 2017 My Price 10.00

Depreciation expense for year two

At the beginning of last year, Brentwood Corporation purchased a piece of heavy equipment for $88,000.  The equipment has a life of five years or 100,000 hours. The estimated residual value is $8,000.  Bremond used the equipment for 19,000 hours last year and 22,000 hours this year. Depreciation expense for year two using double-declining-balance (DDB) and units-of-production (UOP) methods would be as follows:

 

        DDB                   UOP

  • A.    $19,200       $19,360
  • B.    $19,200       $17,600
  • C.    $21,120       $19,360
  • D.    $21,120        $17,600

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CourseLover
(12)
Status NEW Posted 10 Dec 2017 04:12 PM My Price 10.00

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