Question
I need help with two questions 1. A machine that cost $132,000 has an estimated residual value of $22,000 and an estimated useful life of
I need help with two questions 1. A machine that cost $132,000 has an estimated residual value of $22,000 and an estimated useful life of 22,000 machine hours. The company uses units-of-production depreciation and ran the machine 5,000 hours in year 1, 7,000 hours in year 2, and 7,000 hours in year 3.
Calculate its book value at the end of year 3.
I got 35,000 and that's wrong
2. A machine that cost $300,000 has an estimated residual value of $30,000 and an estimated useful life of four years. The company uses double-declining-balance depreciation. Calculate its book value at the end of year 3
I got 59375 and that is wrong as well
Someone please help Also do not round intermediate steps
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