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A machine that cost $900,000 was purchased on April 1, 2025. Its estimated salvage value is $90,000 and its expected life is eight years. Total
A machine that cost $900,000 was purchased on April 1, 2025. Its estimated salvage value is $90,000 and its expected life is eight years. Total estimated production is 10,000 units.
Instructions:
(1). Calculate the deprecation expense (to the nearest dollar) by each of the following methods,
(A) straight line for 2025
(B) double decking balance for 2026
(C) unit of production for 2026. Actual production unit in 2016 is 1,500 units.
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