Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Carla Vista Ltd . purchased a new machine on April 4 , 2 0 2 0 , at a cost of $ 1 7 6

Carla Vista Ltd. purchased a new machine on April 4,2020, at a cost of $176,000. The company estimated that the machine would have a residual value of $18,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1,600 hours in 2020; 2,200 hours in 2021; 2,300 hours in 2022; 2,000 hours in 2023; and 1,900 hours in 2024. Carla Vista has a December 31 year end.
(a)
Your answer is partially correct.
Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, eg.275 and final answers to 0 decimal places, es.5,275.)
(1) Straight-line for 2020 through to 2024.
2020 expense $
2021 expense $
2022 expense $
2023 expense $
2024 expense $
(2) Diminishing-balance using double the straight-line rate for 2020 through to 2024.
\table[[2020 expense,],[2021 expense expense,],[2023 expense,$
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions