On January 2, 2019, Konrad Corporation acquired equipment for $500,000. The estimated life of the equipment is 5 years or 18,000 hours. The estimated residual value is $14,000. If Konrad Corporation uses the straight line method of depreciation, what will be the debit to Depreciation Expense for the year ended December 31, 2020, assuming that during this period, the asset was used 6,000 hours?

To determine the debit to Depreciation Expense for the year ended December 31, 2020, you can follow these steps:

Step 1: Calculate the annual depreciation expense.
To calculate the annual depreciation expense using the straight-line method, you need to know the purchase cost, estimated residual value, and the estimated life of the equipment.

Cost of the equipment = $500,000
Estimated residual value = $14,000
Estimated life of the equipment = 5 years or 18,000 hours

Since the estimated life is given in both years and hours, we need to determine which method to use based on the information provided. In this case, we'll use hours because the usage is also given in hours.

Annual depreciation = (Cost - Residual Value) / Estimated life in hours
Annual depreciation = ($500,000 - $14,000) / 18,000 hours
Annual depreciation = $486,000 / 18,000 hours
Annual depreciation = $27 per hour

So, the annual depreciation expense for the equipment is $27 per hour.

Step 2: Calculate the depreciation expense for the period.
To calculate the depreciation expense for a specific period, you need to multiply the depreciation rate per hour by the number of hours the equipment was used during that period.

Period depreciation expense = Depreciation rate per hour x Number of hours used
Period depreciation expense = $27/hour x 6,000 hours
Period depreciation expense = $162,000

Therefore, the debit to Depreciation Expense for the year ended December 31, 2020 would be $162,000.