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Cullumber Company purchased a new machine on October 1,2022 , at a cost of $110,000. The company estimated that the machine will have a salvage
Cullumber Company purchased a new machine on October 1,2022 , at a cost of $110,000. The company estimated that the machine will have a salvage value of $10,000. The machine is expected to be used for 10,000 working hours during its 5-year life. (a) Compute the depreciation expense under straight-line method for 2022. (b) Your answer is correct. Compute the depreciation expense under units-of-activity for 2022, assuming machine usage was 1,500 hours. (Round depreciable cost per unit to 2 decimal places, e.g. 0.50 and final answer to 0 decimal places, e.g. 2,125.) eTextbook and Media Attempts: 1 of 3 used (c) Your answer is incorrect. Compute the depreciation expense under declining-balance using double the straight-line rate for 2022 and 2023
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