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I'm very confused on how these last two methods work. Please show step by step solutions on how to find the depreciation expense for them.
I'm very confused on how these last two methods work. Please show step by step solutions on how to find the depreciation expense for them. Thank you!
Sheffield Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $158,100. The company estimated that the machine would have a salvage value of $14,100 at the end of its service life. Its life is estimated at 5 years, and its working hours are estimated at 22,500 hours. Year-end is December 31. Compute the depreciation expense under the following methods. Each of the following should be considered unrelated. (Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to 0 decimal places, e.g. 45,892.) (a) Straight-line depreciation for 2020 $ 12000 (b) Activity method for 2020, assuming that machine usage was 800 hours $ 5120 (c) Sum-of-the-years'-digits for 2021 $ (d) Double-declining-balance for 2021 $Step by Step Solution
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