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Ivanhoe Ltd. purchased a new machine on April 4,2020, at a cost of $188,000. The company estimated that the machine would have a residual value
Ivanhoe Ltd. purchased a new machine on April 4,2020, at a cost of $188,000. The company estimated that the machine would have a residual value of $18,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usaze was 1,400 hours in 2020; 2,100 hours in 2021; 2,300 hours in 2022; 2,300 hours in 2023; and 1,900 hours in 2024. Ivanhoe has a Decamber 31 year and. (a) - Your answer is partially correct. Calculate depraciation for the machine under each of the following methods: (Round expense per unit to 2 decimal places, eg. 2.75 and final answers to 0 decimal places, e.g. 5,275 .) (1) Straight-line for 2020 through to 2024 (2) Diminishing-balance using double the straight-line rate for 2020 through to 2024. (3) Units-of-production for 2020 through to 2024
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