Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crane Ltd purchased a new machine on April 4, 2017, at a cost of $188,000. The company estimated that the machine would have a

image text in transcribedimage text in transcribed

Crane Ltd purchased a new machine on April 4, 2017, at a cost of $188,000. 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 1,400 hours in 2017: 2.100 hours in 2018: 2,300 hours in 2019: 2.400 hours in 2020, and 1,800 hours in 2021. Crane has a December 31 year end. (a) Calculate depreciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, eg 2.75 and final answers to O decimal places, eg. 5,275) (1) Straight-line for 2017 through to 2021 2017 expense S 2018 expense $ 2019 expense $ 2020 expense 2021 expense (2) Diminishing-balance using double the straight-line rate for 2017 through to 2021 2017 expense 2018 expense $ 2019 expense $ 2020 expense $ 2021 expense $ 3) Units of production for 2017 through to 2021 2017 expense 2010 expense 2019 expense $ 2020 expense S 2021

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Managerial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

10th Edition

B010IKDQZM

More Books

Students also viewed these Accounting questions