Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

DAR NEXE Question 21 Vaughn Manufacturing purchased a machine on January 1, 2020 for use in its factory. Vaughn paid $597,000 for the machine and

image text in transcribed

DAR NEXE Question 21 Vaughn Manufacturing purchased a machine on January 1, 2020 for use in its factory. Vaughn paid $597,000 for the machine and estimated that it had a useful life of 10 years, at the end of which time the machine was expected to have a residual value of $30,000. During its life, the machine was expected to produce 420,000 units. During 2020, the machine produced 44,600 units, and produced 67,800 in 2021. The machine was subject to a 20% CCA rate, and Vaughn's year-end was December 31. Calculate the annual depreciation amount for 2020 and 2021 under the straight-line method. 2020 2021 Annual depreciation amount $ Calculate the annual depreciation amount for 2020 and 2021 under the activity method. (Round per unit value to 2 decimal places e.g. 5.75 and final answers to 0 decimal places, e.g. 5,275.) 2020 2021 Annual depreciation amount $ $ Calculate the annual depreciation amount for 2020 and 2021 under the double-declining balance method. 2020 2021 Annual depreciation amount $ Calculate the annual depreciation amount for 2020 and 2021 under the capital cost allowance method. 2020 2021 Annual depreciation amount $ $

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_2

Step: 3

blur-text-image_3

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

Accounting

Authors: Charles T. Horngren, Walter T. Harrison

7th Edition

0132439603, 9780132439602

More Books

Students also viewed these Accounting questions

Question

2. Use the working-backward strategy to plan a party.

Answered: 1 week ago

Question

b. Did you suppress any of your anger? Explain.

Answered: 1 week ago