Question
On January 1, 2015, a machine was purchased for $100,800. The machine has an estimated salvage value of $6,720 and an estimated useful life of
On January 1, 2015, a machine was purchased for $100,800. The machine has an estimated salvage value of $6,720 and an estimated useful life of 5 years. The machine can operate for 112,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2015, 22,400 hrs; 2016, 28,000 hrs; 2017, 16,800 hrs; 2018, 33,600 hrs; and 2019, 11,200 hrs.
Part 1
Part 1
Compute the annual depreciation charges over the machines life assuming a December 31 year-end for each of the following depreciation methods. (Round answers to 0 decimal places, e.g. 45,892.)
(1) | Straight-line Method | $ | ||
(2) | Activity Method | |||
Year | ||||
2015 | $ | |||
2016 | $ | |||
2017 | $ | |||
2018 | $ | |||
2019 | $ | |||
(3) | Sum-of-the-Years'-Digits Method | |||
Year | ||||
2015 | $ | |||
2016 | $ | |||
2017 | $ | |||
2018 | $ | |||
2019 | $ | |||
(4) | Double-Declining-Balance Method | |||
Year | ||||
2015 | $ | |||
2016 | $ | |||
2017 | $ | |||
2018 | $ | |||
2019 | $ |
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Part 2
Part 2
Assume a fiscal year-end of September 30. Compute the annual depreciation charges over the assets life applying each of the following methods. (Round answers to 0 decimal places, e.g. 45,892.)
Year | Straight-line Method | Sum-of-the-years'-digits method | Double-declining-balance method | |||
2015 | $ | $ | $ | |||
2016 | ||||||
2017 | ||||||
2018 | ||||||
2019 | ||||||
2020 |
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