Question
Marigold Corporation purchased a new machine for its assembly process on August 1, 2017. The cost of this machine was $129,690. The company estimated that
Marigold Corporation purchased a new machine for its assembly process on August 1, 2017. The cost of this machine was $129,690. The company estimated that the machine would have a salvage value of $14,190at the end of its service life. Its life is estimated at5years, and its working hours are estimated at21,500hours. Year-end is December 31.
Compute the depreciation expense under the following methods. Each of the following should be considered unrelated.(Round depreciation rate per hour to 2 decimal places, e.g. 5.35 for computational purposes. Round your answers to 0 decimal places, e.g. 45,892.)
(a)Straight-line depreciation for 2017$
(b)Activity method for 2017, assuming that machine usage was810hours$
(c)Sum-of-the-years'-digits for 2018$
(d)Double-declining-balance for 2018$
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