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On January 1, 2018, a machine was purchased for $115,000. The machine has an estimated salvage value of $8,800 and an estimated useful life of
On January 1, 2018, a machine was purchased for $115,000. The machine has an estimated salvage value of $8,800 and an estimated useful life of 5 years. The machine can operate for 118,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 23,600 hrs; 2019,29,500 hrs; 2020, 17,700 hrs; 2021, 35,400 hrs; and 2022, 11,800 hrs. 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 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 $ 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 decimal places, eg. 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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