Question
On January 1, 2015, a machine was purchased for $108,000. The machine has an estimated salvage value of $7,200 and an estimated useful life of
On January 1, 2015, a machine was purchased for $108,000. The machine has an estimated salvage value of $7,200 and an estimated useful life of 5 years. The machine can operate for 120,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2015, 24,000 hrs; 2016, 30,000 hrs; 2017, 18,000 hrs; 2018, 36,000 hrs; and 2019, 12,000 hrs. Compute the annual depreciation charges over the machines life assuming 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.) Straight-line Method, Sum-of-the-years'-digits method, and Double-declining-balance method for 2015, 2016, 2017, 2018, 2019, 2020
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