Question
On January 1, 2015, a machine was purchased for $96,300. The machine has an estimated salvage value of $6,420and an estimated useful life of5years. The
On January 1, 2015, a machine was purchased for $96,300. The machine has an estimated salvage value of $6,420and an estimated useful life of5years. The machine can operate for107,000hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2015,21,400hrs; 2016,26,750hrs; 2017,16,050hrs; 2018,32,100hrs; and 2019,10,700hrs.
part 1
1) straight line method ____________
2) Activity Method
Year
2015
2016
2017
2018
2019
3) sum of the year digits method
year
2015
2016
2017
2018
2019
4) double declining balance method
year
2015
2016
2017
2018
2019
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.
Year straight line sum of the Year Double declining balance
2015
2016
2017
2018
2019
2020
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Managerial Accounting
Authors: Karen BraunWendy Tietz
3rd Edition
0132890542, 978-0132890540
