On January 3, 2014, Dave's Excavating Company purchased a bulldozer for $200,000

On January 3, 2014, Dave’s Excavating Company purchased a bulldozer for $200,000. In addition to the basic

purchase price, the company paid sales tax of $12,000 and freight charges of $11,000. The bulldozer will be used for 36,000 machine hours. Dave estimates that the bulldozer will have a useful life of 5 years and no residual value.

Required:
I. Compute the cost of the asset.
II. Compute the depreciation expense for 2014 and 2015 using the:
i. straight-line method
ii. units-of-production method assuming the bulldozer was used 5,000 machine hours in 2014 and 20,000 machine hours in 2015.
iii. double declining balance method

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now