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Integrity Manufacturing purchased a machine on 1 July 2017. The following financial information has been collected to calculate the depreciation on 30 June 2019: Cost
Integrity Manufacturing purchased a machine on 1 July 2017. The following financial information has been collected to calculate the depreciation on 30 June 2019:
Cost | $100,000 |
|
Expected salvage value | $1,000 |
|
Estimated useful life in years | 6 |
|
Estimated useful life in hours | 300,000 |
|
Hours used in 2020 is: | 60,000 |
|
Required:
Calculate the depreciation expense of the machine for the year ended 30 June 2019 (two decimal places)using:
1. Straight-line method
2. Unit of activity method
3. Declining balance method using double straight-line rate
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