Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Could correct these mistakes? 1) Straight line: 2021 expense 2) diminishing using double the straight line: 2020 expense and 2021 expense For better quality: Crane
Could correct these mistakes?
1) Straight line: 2021 expense 2) diminishing using double the straight line: 2020 expense and 2021 expense
For better quality:
Crane Ltd. purchased a new machine on April 4, 2017, at a cost of $172,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1,500 hours in 2017;2,200 hours in 2018; 2,400 hours in 2019;2,100 hours in 2020; and 1,800 hours in 2021. Crane 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, e.g. 2.75 and final answers to 0 decimal places, e.g. 5,275.) (1) Straight-line for 2017 through to 2021. 2017 expense $ 2018 expense $ 2019 expense \$ (2) Diminishing-balance using double the straight-line rate for 2017 through to 2021. Crane Ltd. purchased a new machine on April 4, 2017, at a cost of $172,000. The company estimated that the machine would have a residual value of $16,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1,500 hours in 2017; 2,200 hours in 2018;2,400 hours in 2019;2,100 hours in 2020; and 1,800 hours in 2021 . Crane has a December 31 year end
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