Question
Machinery is purchased on July 1 of the current fiscal year for $240,000. It is expected to have a useful life of 4 years, or
Machinery is purchased on July 1 of the current fiscal year for $240,000. It is expected to have a useful life of 4 years, or 25,000 hours of operation, and a salvage value of $15,000. Calculate the depreciation for the last six months of the current fiscal year ending December 31, and the total depreciation of the following year by each of the following methods: (15 points)
(a) | straight line |
(b) | declining balance at twice the linear rate |
(C) | production units (used for 1,600 hours during the current year, 1,800 hours the following year) |
(Round your answer to the nearest dollar)
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ANSWER a Straight Line Depreciation The annual depreciation using the straightline method can be calculated as follows Annual Depreciation Cost Salvag...Get Instant Access to Expert-Tailored Solutions
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Intermediate Accounting
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
10th Canadian Edition, Volume 1
978-1118735329, 9781118726327, 1118735323, 1118726324, 978-0176509736
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