Question
On January 1, 2018, the Allegheny Corporation purchased machinery for $150,000. The estimated service life of the machinery is 10 years and the estimated residual
On January 1, 2018, the Allegheny Corporation purchased machinery for $150,000. The estimated service life of the machinery is 10 years and the estimated residual value is $7,000. The machine is expected to produce 180,000 units during its life. Required: Calculate depreciation for 2018 and 2019 using each of the following methods. 1. Straight line. 2. Sum-of-the-years'-digits. 3. Double-declining balance. 4. One hundred fifty percent declining balance. 5. Units of production (units produced in 2018, 37,000; units produced in 2019, 32,000).
Required 1:Calculate depreciation for 2018 and 2019 using straight line method.
Required 2: Calculate depreciation for 2018 and 2019 using sum-of-the-years' digits.
Required 3: Calculate depreciation for 2018 and 2019 using double-declining balance.
Required 4: Calculate depreciation for 2018 and 2019 using one hundred fifty percent declining balance.
Required 5: Calculate depreciation for 2018 and 2019 using units of production (units produced in 2018, 37,000; units produced in 2019, 32,000). (Round "Depreciation per unit rate" answers to 2 decimal places.)
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