Question
Company A, Company B and Company C had purchased the same piece of machinery 2 years ago at the beginning of 2022. The machinery was
Company A, Company B and Company C had purchased the same piece of machinery 2 years ago at the beginning of 2022. The machinery was originally purchased for $93,000 and had a residual value of $5,000. At the time of purchase the estimated useful life of the asset was 4 years or the equivalent useful life in units-of-production equal to 17,600 units. At the beginning of 2024, it was determined that the total useful life of the asset was 6 years rather than 4 years originally expected or the equivalent total units-of-production of 33,200 units. In addition, to the extended useful life of the machinery, the revised residual value is estimated at $2,000. The actual number of units produced in the first two years was 6,600 units per year. The actual production for 2024 was 7,000 units. Each of the companies uses a different method of depreciation with Company A using the straight-line method of depreciation, Company B uses the units-of-production method with a per unit depreciation charge rounded to the nearest cent and Company C uses the double diminishing-balance method.Calculate the revised depreciation expense amount for 2024 for each of Company A, Company B and Company C. (Round depreciation per unit to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 125.)
Revised annual depreciation for 2024 | ||
---|---|---|
Company A | $enter a dollar amount rounded to 0 decimal places | |
Company B | $enter a dollar amount rounded to 0 decimal places | |
Company C | $ |
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