Exercise 9-20

Blossom Company purchased a new machine on October 1, 2017, at a cost of $85,000. The company estimated that the machine has a salvage value of $7,000. The machine is expected to be used for 60,000 working hours during its 8-year life. Compute depreciation using the following methods in the year indicated.

Declining-balance using double the straight-line rate for 2017 and 2018. (Round answers to 0 decimal places, e.g. 125)

2017 2018 Depreciation using the Declining-balance method $enter a dollar amount $enter a dollar amount

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Calculate the depreciation cost per hour. (Round answer to 2 decimal places, e.g. $1.25)

Depreciation cost per hour $enter the depreciation cost per hour in dollars rounded to 2 decimal places

Units-of-activity for 2017, assuming machine usage was 400 hours. (Round answer to 0 decimal places, e.g. 125)

Depreciation using the Units-of-activity method for 2017 $enter the units-of-activity depreciation cost for 2017 in dollars