Question
Cullumber Ltd. purchased a new machine on April 4, 2017, at a cost of $176,000. The company estimated that the machine would have a residual
Cullumber Ltd. purchased a new machine on April 4, 2017, at a cost of $176,000. 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 1,700 hours in 2017; 2,100 hours in 2018; 2,500 hours in 2019; 2,100 hours in 2020; and 2,000 hours in 2021. Cullumber has a December 31 year end.
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 | $enter a dollar amount | ||
---|---|---|---|
2018 expense | $enter a dollar amount | ||
2019 expense | $enter a dollar amount | ||
2020 expense | $enter a dollar amount | ||
2021 expense | $enter a dollar amount |
(2) Diminishing-balance using double the straight-line rate for 2017 through to 2021.
2017 expense | $enter a dollar amount | ||
---|---|---|---|
2018 expense | $enter a dollar amount | ||
2019 expense | $enter a dollar amount | ||
2020 expense | $enter a dollar amount | ||
2021 expense | $enter a dollar amount |
(3) Units-of-production for 2017 through to 2021.
2017 expense | $enter a dollar amount | ||
---|---|---|---|
2018 expense | $enter a dollar amount | ||
2019 expense | $enter a dollar amount | ||
2020 expense | $enter a dollar amount | ||
2021 expense | $enter a dollar amount |
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