Question
----------- Flint Company purchased a new machine on October 1, 2020, at a cost of $110,800. The company estimated that the machine will have a
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Flint Company purchased a new machine on October 1, 2020, at a cost of $110,800. The company estimated that the machine will have a salvage value of $10,800. The machine is expected to be used for 10,000 working hours during its 4-year life.
a.) Compute the depreciation expense under straight-line method for 2020.
Now, for the straight-line method, I have $25,000 (i'm almost certain this is correct)
(Cost / life in years, i think!) = Depreciable cost per unit = (110800 - 10800) / 4 = 25000
b.) Compute the depreciation expense under units-of-activity for 2020, assuming machine usage was 1,510 hours.
units-of-activity method, I have $27,700 (i'm not 100% sure if this is right)
(cost / total life) = depreciable cost per unit = (110800 / 10000 *4) = 2.77, 2.77*10000 = 27700
Again, i'm not sure that this is correct.
c.) Compute the depreciation expense under declining-balance using double the straight-line rate for 2020 and 2021
I could really use a solid explanation on the units-of-activity (units-of-production) method and the declining-balance method using double the straight-line rate for 2020 and 2021.
I know this: Book Value at beginning of year * Declining balance rate = Annual depreciation expense.
Thanks
Exercise 10-06 a-c Flint Company purchased a new machine on October 1, 2020, at a cost of $110,800. The company estimated that the machine will have a salvage value of $10,800. The machine is expected to be used for 10,000 working hours during its 4-year life. Compute the depreciation expense under straight-line method for 2020. (Round answer to 0 decimal places, e.g. 2,125.) 2020 Depreciation expense LINK TO TEXT Compute the depreciation expense under units-of-activity for 2020, assuming machine usage was 1,510 hours. (Round intermediate calculations to 1 decimal place, e.g.10.1 and final answer to O decimal places, e.g. 2,125.) 2020 Depreciation expense LINK TO TEXT Compute the depreciation expense under declining-balance using double the straight-line rate for 2020 and 2021. (Round answers to 0 decimal places, e.g. 2,125.) 2020 2021 Depreciation expenseStep by Step Solution
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