Depreciation Methods} Muskoko Corporation purchased a copying machine for ($ 8,700) on January 1, 2018. The machine's
Question:
Depreciation Methods}
Muskoko Corporation purchased a copying machine for \(\$ 8,700\) on January 1, 2018. The machine's residual value was \(\$ 425\) and its estimated life was five years or \(2,000,000\) copies. Actual usage was 480,000 copies the first year and 400,000 the second year.
\section*{Required:}
1. Compute depreciation expense for 2018 and 2019 using the
(a) straight-line method,
(b) double-declining-balance method, and
(c) units-of-production method.
2. For each depreciation method, what is the book value of the machine at the end 2018 ? At the end of the 2019?
3. Assume that Muskoko uses the double-declining-balance method of depreciation. What is YOUDECIDE
\section*{OBJECTIVE 34}
![](https://cdn.mathpix.com/cropped/2024_06_05_31d6c16c4f1c15043517g-17.jpg?height=178&width=153&top_left_y=1322&top_left_x=351)
OBJECTIVE 34 YOUDECIDE
\section*{OBJECTIVE 3 (4)} the effect on assets and income relative to if Muskoko had used the straight-line method of depreciation instead of the double-declining-balance method of depreciation?
\section*{Exercise
Step by Step Answer:
Cornerstones Of Financial Accounting
ISBN: 9780176707125
2nd Canadian Edition
Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone