Question
Novak Corp. purchased a new machine on October 1, 2022, at a cost of $137,000. The company estimated that the machine will have a salvage
Novak Corp. purchased a new machine on October 1, 2022, at a cost of $137,000. The company estimated that the machine will have a salvage value of $21,500. The machine is expected to be used for 10,000 working hours during its 5-year life.
Please show your work, Thank You.
For context, I have already completed the parts below. I just need help solving (c).
(a) Compute the depreciation expense under straight-line method for 2022.
2022 | |
Depreciation Expense | $5775 |
(b) Compute the depreciation expense under units-of-activity for 2022, assuming machine usage was 1,780 hours. (Round depreciable cost per unit to 2 decimal places, e.g. 0.50 and final answer to 0 decimal places, e.g. 2,125.)
2022 | |
Depreciation Expense | 20559 |
(c) Compute the depreciation expense under declining-balance using double the straight-line rate for 2022 and 2023.
2022 | 2023 | |
Depreciation Expense | $_______ | $_______ |
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