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On January 1, 2018, a machine was purchased for $87,500. The machine has an estimated salvage value of $6,500 and an estimated useful life of
On January 1, 2018, a machine was purchased for $87,500. The machine has an estimated salvage value of $6,500 and an estimated useful life of 5 years. The machine can operate for 100,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 20,000 hrs; 2019,25,000 hrs; 2020, 15,000 hrs; 2021, 30,000 hrs; and 2022, 10,000 hrs. Your answer is partially correct. 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 O decimal places, e.g. 45,892.) 1. Straight-line Method $ 16200 2. Activity Method Year 2018 $ 16200 2019 $ 20250 2020 $ 12150 2021 $ 24300 2022 $ 8100 3. Sum-of-the-Years'-Digits Method Year 2018 $ 27000 2019 $ 21600 2020 $ 1620010800 2021 $ 10800 2022 $ 5400 4. Double-Declining-Balance Method Year 2018 $ 35000 2019 $ 21000 2020 $ 8400 2021 $ 3360 2022 $ 1344 Your answer is partially correct. 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 $ 87,500 $ 26250 $ 61250 2019 16200 21600 21000 2020 16200 10800 8400 2021 16200 3360 2022 16200 5400 1344 2023 16200
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