Question
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2016: Purchase price $ 90,800 Delivery cost $ 4,000
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2016:
Purchase price | $ | 90,800 | |
Delivery cost | $ | 4,000 | |
Installation charge | $ | 3,000 | |
Estimated life | 5 | years | |
Estimated units | 153,000 | ||
Salvage estimate | $ | 6,000 | |
During 2016, the machine produced 49,000 units and during 2017, it produced 51,000 units. |
Required: |
a. | Determine the amount of depreciation expense for 2016 and 2017 using straight-line method. |
Depriation expense 2016 2017
b. | Determine the amount of depreciation expense for 2016 and 2017 using double-declining-balance method Depriation expense 2016 2017
depriation expense 2016 2017
|
Step 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