Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Studies Of Company Records (RLE Accounting)1830-1974

Authors: J. R. Edwards

1st Edition

1138983306, 9781138983304

More Books

Students also viewed these Accounting questions