Answered step by step
Verified Expert Solution
Question
1 Approved Answer
answer to fill these blanks Oriole Ltd. purchased a new machine on April 4, 2014, at a cost of $184,000. The company estimated that the
answer to fill these blanks
Oriole Ltd. purchased a new machine on April 4, 2014, at a cost of $184,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,500 working hours during its four-year life. Actual machine usage was 1.500 hours in 2014: 2,400 hours in 2015: 2.500 hours in 2016: 2.100 hours in 2017 and 2,000 hours in 2018. Oriole has a December 31 year end. Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, eg. 2.75 and final answers to decimal places, eg. 5,275) (1) Straight-line for 2014 through to 2018. 2014 expense 2015 expense $ 2016 expense $ 2017 expense $ $ 2018 expense (2) Diminishing-balance using double the straight-line rate for 2014 through to 2018. 2014 expense $ 2015 expense $ 2016 expense $ 2017 expense $ 2018 expense $ (3) Units-of-production for 2014 through to 2018. 2014 expense $ 2015 expense $ $ 2016 expense 2017 expense $ $ 2018 expense Which method results in the highest depreciation expense over the life of the asset? Highest net income? Highest cash flow? Which method results in the highest net income? Which method results in the highest cash flowStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started