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On January 1, 2019, ZALLAQ Co. purchased a machine for $960,000. The company estimated that the machine will have a 5-year useful life or 100,000
On January 1, 2019, ZALLAQ Co. purchased a machine for $960,000. The company estimated that the machine will have a 5-year useful life or 100,000 units over its useful life. Salvage value at the end its useful life is estimated to be $60,000. Required: A. Compute the amount of depreciation expense for the year ended December 31, 2019, using the straight-line method of depreciation. B. Compute the amount of depreciation expense for the years ended December 31, 2019 using units-of-production method of depreciation assuming that the company produced 15,000 units in 2019. C. Compute the amount of depreciation expense for the year ended December 31, 2020 (year two), using the double-declining-balance method of depreciation. (SHOW YOUR CALCULATIONS)
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