Question
On January 1, 2018, a machine was purchased for $112,500. The machine has an estimated salvage value of $7,200 and an estimated useful life of
On January 1, 2018, a machine was purchased for $112,500. The machine has an estimated salvage value of $7,200 and an estimated useful life of 5 years. The machine can operate for 117,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 23,400 hrs; 2019, 29,250 hrs; 2020, 17,550 hrs; 2021, 35,100 hrs; and 2022, 11,700 hrs.
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 | |||
2018 | $ | $ | $ | |||
2019 | ||||||
2020 | ||||||
2021 | ||||||
2022 | ||||||
2023 |
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