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Honesty Manufacturing purchased a machine on 1 July, 2017. The following financial information has been collected to calculate the depreciation at 30 June 2019: Cost
Honesty Manufacturing purchased a machine on 1 July, 2017. The following financial information has been collected to calculate the depreciation at 30 June 2019:
Cost | $58,500 |
Expected salvage value | $1,000 |
Estimated useful life in years | 5 |
Estimated useful life in hours | 200,000 |
Hours used in 2020 is: | 48,000 |
Required:
Calculate the depreciation expense of the machine for the year ended 30 June 2019 using:
a) Straight-line method
b) Unit of activity method
c) Declining balance method using double straight-line rate
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