Question
20. The double-declining-balance depreciation method ignores the residual value until the depreciation expense takes the book value below the residual value. TRUE FALSE 21. January
20. The double-declining-balance depreciation method ignores the residual value until the depreciation expense takes the book value below the residual value. TRUE FALSE
21. January 1, 2017, Shelleys Manufacturing purchased a machine for $40,600,000. Shelleys management expects to use the machine for 34,000 hours over the next six years. The estimated residual value of the machine at the end of the sixth year is $47,000. The machine was used for 4,000 hours in 2017 and 5,400 hours in 2018. Calculate the book value of the machine at the end of 2018 if Shelleys Manufacturing uses the units-of-production method of depreciation. (Round to two decimal places, and your final answer to nearest dollar.) A) $35,829,040 B) $40,600,000 C) $29,375,272 D) $29,388,244
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