Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Calculate the amount of depreciation expense that Evers should record for Machine B each year of its useful life under the following assumptions. (Round depreciation
Calculate the amount of depreciation expense that Evers should record for Machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to 0 decimal places, e.g. 2,125.) (1) Evers uses the straight-line method of depreciation. (2) Evers uses the declining-balance method. The rate used is twice the straight-line rate. (3) Evers uses the units-of-activity method and estimates that the useful life of the machine is 190,100 units. Actual usage is as follows: 2017, 62,000 units 2018, 51,500 units; 2019, 41,000 units; 2020, 35,600 units. Depreciation Expense 2017 2018 2019 2020 s/42,525 42,52542,52542,525 Straight-line method Declining-balance method 90,00045,00022,500 11,250 $55,18045,83536,490 $31,684 Units-of-activity method Your answer is partially correct. Try again. Which method used to calculate depreciation on Machine B reports the highest amount of depreciation expense in year 1 (2017)? Declining-balance method The highest amount in year 4 (2020)? |Straight-line method The highest total amount over the 4-year period? Straight-line method
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