Question
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2018: Purchase price $ 91,600 Delivery cost $ 7,000
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2018:
| Purchase price | $ | 91,600 | |
| Delivery cost | $ | 7,000 | |
| Installation charge | $ | 2,000 | |
| Estimated life | 5 | years | |
| Estimated units | 156,000 | ||
| Salvage estimate | $ | 7,000 | |
During 2018, the machine produced 52,000 units and during 2019, it produced 54,000 units.
Required Determine the amount of depreciation expense for 2018 and 2019 using each of the following methods:
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
6th Edition
0273638335, 978-0273638339
