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A Company purchases a factory machine at a cost of $18,000 on January 1, 2016. Company expects the machine to have a residual value of
A Company purchases a factory machine at a cost of $18,000 on January 1, 2016. Company expects the machine to have a residual value of $2,000 at the end of its 4-year useful life.. During its useful life the machine is expected to be used 160,000 hours. Actual annual hourly use was; Year Hours Used 2016 40,000 Hours 2017 60,000 Hours 2018 35,000 Hours 2019 25,000 Hours Required: 1- Calculate yearly deprecation amount and the accumulated depreciation amount under the following methods: a. Straight line method b. Reducing balance method c. Double declining method d. Units of activity method e. Sum of year digit method
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