Calculations for various depreciation methods. Alcoa acquires a machine for $88,800. It expects the machine to last
Question:
Calculations for various depreciation methods. Alcoa acquires a machine for $88,800. It expects the machine to last six years and to operate for 30.000 hours during that time. Estimated salvage value is $4,800 at the end of the machine's useful life. Calculate the depreciation charge for each of the first three years using each of the following methods:
a. The straight-line (time) method
b. The sum-of-the-years'-digits method
c. The declining-balance method using a 33 percent rate
d. The straight-line (use) method, with the following operating times: first year. 4.500 hours;
second year. 5.000 hours; third year, 5.500 hours
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Accounting Introduction To Concepts Methods And Uses
ISBN: 9780324222975
11th Edition
Authors: Clyde P. Stickney, Roman L. Weil
Question Posted: