Question
On January 1, 2018, a machine was purchased for $ 105,000. The machine has an estimated salvage value of $ 6,420 and an estimated useful
On January 1, 2018, a machine was purchased for $ 105,000. The machine has an estimated salvage value of $ 6,420 and an estimated useful life of 5 years. The machine can operate for 106,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 21,200 hrs; 2019, 26,500 hrs; 2020, 15,900 hrs; 2021, 31,800 hrs; and 2022, 10,600 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 |
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started