Question
MachineB:The recorded cost of this machine was $201,600. Evers estimates that the useful life of the machine is4years with a $11,500salvage value remaining at the
MachineB:The recorded cost of this machine was $201,600. Evers estimates that the useful life of the machine is4years with a $11,500salvage value remaining at the end of that time period
Calculate the amount of depreciation expense that Evers should record for machine B each year of its useful life under the following assumptions. (Round depreciation cost per unit to 2 decimal places, e.g. 12.25. Round final answers to 0 decimal places, e.g. $2,125.)
(1)Evers uses the straight-line method of depreciation.(2)Evers uses the declining-balance method. The rate used is twice the straight-line rate.(3)Evers uses the units-of-activity method and estimates that the useful life of the machine is173,100 units. Actual usage is as follows: 2014,58,900 units; 2015,47,200 units; 2016,36,300 units; 2017,30,700 units.
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