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On January 1, 2018, a machine was purchased for $120,000. The machine has an estimated salvage value of $9,600 and an estimated useful life of
On January 1, 2018, a machine was purchased for $120,000. The machine has an estimated salvage value of $9,600 and an estimated useful life of 5 years. The machine can operate for 120,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 24,000 hrs; 2019,30,000 hrs: 2020, 18,000 hrs; 2021, 36,000 hrs; and 2022, 12,000 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 0 decimal places, e.g. 45,892.) 1. Straight-line Method $ 2. Activity Method Year 2018 $ 2019 $ 2020 A A A A 2021 $ 2022 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 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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