Question
Depreciation Methods Berkshire Corporation purchased a copying machine for $9,800 on January 1, 2019. The machine's residual value was $1,175 and its expected life was
Depreciation Methods Berkshire Corporation purchased a copying machine for $9,800 on January 1, 2019. The machine's residual value was $1,175 and its expected life was 5 years or 2,000,000 copies. Actual usage was 480,000 copies in the first year and 448,000 in the second year.
Compute depreciation expense for 2019 and 2020 using the:
a. Straight-line method.
Depreciation expense: _______ per year
b. Double-declining-balance method.
Depreciation Expense | |
2019 | |
2020 |
c. Units-of-production method. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)
Depreciation Expense | |
2019 | |
2020 |
2. For each depreciation method, what is the book value of the machine at the end of 2019? At the end of 2020? If required, round your answers to the nearest whole dollar.
2019 | 2020 | ||
a. | Straight-line method | fill in the blank | fill in the blank |
b. | Double-declining-balance method | fill in the blank | fill in the blank |
c. | Units-of-production method | fill in the blank | fill in the blank |
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