Question
Indigo Company installs a machine in its factory at the beginning of the year at a cost of $120,000. The machines useful life is estimated
Indigo Company installs a machine in its factory at the beginning of the year at a cost of $120,000. The machines useful life is estimated to be 10 years, or 200,000 units of product, with a $10,000 salvage value. Record the companies first and second year depreciation expense using the following methods.
Straight-line Method
Annual Depreciation Expense
Year 1
Year 2
Double Decling Balance Method
Annual Depreciation Expense
Year 1
Year 2 Units-Of-Activity Method (2,500 units were produced in the first year and 3,000 units were produced in the second year)
Depreciatble cost Annual Depreciation Expense
Year 1
Year 2
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