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Crane Ltd. purchased a new machine on April 4, 2020, at a cost of $172,000. The company estimated that the machine would have a

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Crane Ltd. purchased a new machine on April 4, 2020, at a cost of $172,000. The company estimated that the machine would have a residual value of $14,000. 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; 2,000 hours in 2021; 2,200 hours in 2022; 2,300 hours in 2023; and 1,900 hours in 2024. 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, e.g. 2.75 and final answers to O decimal places, e.g. 5,275.) (1) Straight-line for 2020 through to 2024. 2020 expense 2021 expense 2022 expense 2023 expense A 2024 expense A +A (2) Diminishing-balance using double the straight-line rate for 2020 through to 2024. 2020 expense 2021 expense 2022 expense 2023 expense A 2024 expense +A A (3) Units-of-production for 2020 through to 2024. 2020 expense 2021 expense +A $ 2022 expense 2023 expense A 2024 expense +A A

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1 StraightLine Method This method evenly spreads the depreciation expense over the useful life of the asset Calculation Depreciable Cost Cost of machine Residual value Depreciable Cost 172000 14000 15... blur-text-image

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