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Indy Co . purchased machinery for $ 7 5 , 0 0 0 on March 9 , 2 0 X 1 . The machine has
Indy Co purchased machinery for $ on March X The machine has an estimated life of years and salvage value of $ Estimated output is machine hours. The machine was used hours in X and hours in X
Round all answers to the nearest dollar
Calculate depreciation expense and book value of the machine for X and X using:
a Straightline method
b Unitsofproduction method
c Doubledeclining balance method
Now, assume, that same machine was instead purchased originally on January X During X Indy determines that the useful life of the machine will be years rather than years and the salvage value will be $ Calculate revised depreciation for X assuming Indy uses straightline depreciation.
Answer the following questions:
a Which depreciation method results in the greatest amount of expense over an assets life?
b Which depreciation method results in the greatest expense in the early years of an assets life?
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