Question
A machine costing $180,000 has an estimated residual value of $15,000 and an estimated service life of ten years. What is the annual depreciation for
A machine costing $180,000 has an estimated residual value of $15,000 and an estimated service life of ten years. What is the annual depreciation for each of the indicated years under the following methods?
A. Double declining-balance:
i. Year one $_________________________
ii. Year two $ _________________________
B. Units of production. Lifetime production is estimated at 110,000 units; the machine produced 12,000 units in Year one and 18,000 in Year two:
Year one $___ ___________
C. Straight-line depreciation method:
Year one $____________
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