Answered step by step
Verified Expert Solution
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
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
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