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Mosaic Manufacturing purchased a new piece of equipment on January 4, 2019. Mosaic paid $3,500,000 for this piece of machinery that they estimate will last
Mosaic Manufacturing purchased a new piece of equipment on January 4, 2019. Mosaic paid $3,500,000 for this piece of machinery that they estimate will last 10 years or 13,125,000 units of output over the life of the asset. The company estimates the equipment to have a salvage value of $350,000. The following is the actual output of the machine over the useful life by year. Required: 1. Prepare depreciation schedules for each of the following: a. Straight-line method b. Units of production method c. Double declining balance method
Year 1 | 1,620,000 |
Year 2 | 1,610,000 |
Year 3 | 1,500,000 |
Year 4 | 1,500,000 |
Year 5 | 1,320,000 |
Year 6 | 1,320,000 |
Year 7 | 1,210,000 |
Year 8 | 1,200,000 |
Year 9 | 1,100,000 |
Year 10 | 1,100,000 |
Total | 13,480,000 |
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