Question
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2018: Purchase price $ 70,500 Delivery cost $ 8,000
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2018:
| Purchase price | $ | 70,500 | |
| Delivery cost | $ | 8,000 | |
| Installation charge | $ | 2,000 | |
| Estimated life | 5 | years | |
| Estimated units | 151,000 | ||
| Salvage estimate | $ | 5,000 | |
During 2018, the machine produced 47,000 units and during 2019, it produced 49,000 units.
Required Determine the amount of depreciation expense for 2018 and 2019 using each of the following methods:
A. Straight line for 2018 and 2019
B. Double-declining-balance 2018 and 2019
C. Units of Production 2018 and 2019
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Uniform Administrative Requirements Cost Principles And Audit Requirements For Federal Awards A Handbook For Institutions Of Higher Education And State And Local Governments
Authors: Andrew Shepard-Smith
1st Edition
1505298482, 978-1505298482
