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On January 1, 2018, a machine was purchased for $110,000. The machine has an estimated salvage value of $9,080 and an estimated useful life of
On January 1, 2018, a machine was purchased for $110,000. The machine has an estimated salvage value of $9,080 and an estimated useful life of 5 years. The machine can operate for 116,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 23,200 hrs; 2019, 29,000 hrs; 2020, 17,400 hrs; 2021, 34,800 hrs; and 2022, 11,600 hrs. (a) 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 o decimal places, e.g. 45,892.) 1. Straight-line Method 2. Activity Method Year 2018 $ 2019 $ 2020 $ 2021 $ 2022 $ 3. Sum-of-the-Years'-Digits Method Year 2018 $ 2019 $ 2020 $ 2021 $ 2022 $ 4. Double-Declining-Balance Method Year 2018 $ 2019 $ 2020 $ 2021 $ 2022 $
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