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Find straight line method, double diminishing method and units of production method 2018 to 2023 Problem 9-3A a-b Crane Limited purchased a machine on account
Find straight line method, double diminishing method and units of production method 2018 to 2023
Problem 9-3A a-b Crane Limited purchased a machine on account on April 2, 2018, at an invoice price of $360,090. On April 4, it paid $1,850 for delivery of the machine. A one-year, $4,250 insurance policy on the machine was purchased on April 5. On April 18, Crane paid $8,280 for installation and testing of the machine. The machine was ready for use on April 30 Crane estimates the machine's useful life wll be five years or 6,018 units with a residual value of $85,700. Assume the machine produces the following numbers of units each year: 859 units in 2018; 1,504 units in 2019; 1,312 units in 2020; 1,267 units in 2021; and 1,076 units in 2022. Crane has a December 31 year end Determine the cost of the machine. Cost of the machine Calculate the annual depreciation and total depreciation over the asset's life using: (Round the depreciation cost per unit to the nearest cent. Round answers to O decimal places, e.g. 5,275.) (1) Straight-line method Year Depreciable Cost Depreciation Expense 2018 Accumulated Depreciation Carrying Amount 2019 2020 2021Step by Step Solution
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