Question
Depreciation Methods On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of
Depreciation Methods
On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $110,000, and its estimated useful life was four years or 1,050,000 cuttings, after which it could be sold for $5,000.
Required
a. Calculate each years depreciation expense for the machine's useful life under each of the following depreciation methods (round all answers to the nearest dollar): 1. Straight-line. 2. Double-declining balance. 3. Units-of-production. (Assume annual production in cuttings of 260,000; 390,000; 320,000; and 80,000.)
1. Straight-Line
Year | Depreciation Expense |
---|---|
2015 | $Answer
|
2016 | Answer
|
2017 | Answer
|
2018 | Answer
|
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