Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Forget Ltd., which has a December 31 year end, purchased a piece of machinery on November 6, 2023. The machine cost $8,000 and was
Forget Ltd., which has a December 31 year end, purchased a piece of machinery on November 6, 2023. The machine cost $8,000 and was estimated to have an eight year life and an $800 salvage value. It was also estimated that the machine would produce 40,000 units of product over its life. During 2023 the machine actually produced 2,000 units of product and during 2024 it produced 12,000 units. REQUIRED: Calculate the depreciation expense for 2023 and 2024 using the: a) Straight Line method b) Double Declining Balance method c) Units of Production method Show all work. Journal entries are NOT required.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
a Straight Line Method Under the straightline method the depreciation expense is calculated as cost salvage value useful life The cost of the machiner...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started