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On January 1, 2015, a machine was purchased for $112,500. The machine has an estimated salvage value of $7,500 and an estimated useful life of
On January 1, 2015, a machine was purchased for $112,500. The machine has an estimated salvage value of $7,500 and an estimated useful life of 5 years. The machine can operate for 125,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2015, 25,000 hrs: 2016, 31,250 hrs: 2017, 18,750 hrs; 2018, 37,500 hrs; and 2019, 12,500 hrs. Part 1 Compute the annual depreciation charges over the machine's life assuming a December 31 year-end for each of the following depreciation methods. (Round answers to decimal places, eg. 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 $ Double-Declining-Balance Method Year 2015 $ 2016 $ 2017 $ 2018 $ 2019 $ eTextbook and Media Part 2 Assume a fiscal year-end of September 30. Compute the annual depreciation charges over the asset's 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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