The Remove-U-Tattoo Clinic purchased a surgical laser for
$84,000 on January 1, 2014. The estimated
salvage value is $4,000. The laser has a
useful life of five years and the clinic expects to use it 10,000 hours.
It was used for 900 hours in 2014; 2,100 hours in 2015;
2,400 hours in 2016.
Instructions
Showing all of your computations, compute the book value and
the balance in the Accumulated Depreciation Account for December 31, 2015 under
each of the following three methods after the depreciation for 2015 has been
recorded:
(1) Straight-line:
2015 accumulated depreciation ____________________
2015 book value ____________________
(2)
Units-of-activity:
2015 accumulated depreciation
____________________
2015 book value
____________________
(3) Double-declining
balance:
2015 accumulated depreciation
____________________
2015 book value ____________________


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